New | China new home price rises in November, alongside sales improvement
Shenzhen leads China new home price gains, at month-on-month pace of 27.7 pct in November
Nine out of the 10 major mainland Chinese cities tracked by the SCMP-Creda index saw a rise in new home price last month from October, and their combined sales volume picked up for the third month in a row.
The gainers were led by Shenzhen, where the average new home price surged 27.7 per cent month on month in November, after declining 4.7 per cent and 3.5 per cent in the previous two months.
Chengdu was the only city suffering a price drop last month of 0.5 per cent, after falling 3.22 per cent in October, due to heavy supplies.
The combined transaction volume in these 10 cities picked up 7 per cent in November from a month earlier to 14.6 million square metres, driven by a 36 per cent surge in Nanjing and a 32 per cent jump in Chengdu.
“Supply and demand will remain at high levels in December,” said Chen Sheng, dean of the China Real Estate Data Academy, partner of the South China Morning Post for the monthly index, covering prices and transactions in China’s 10 major cities.
They are outperformers in today’s real estate market, where a record high glut has worried policymakers as it can drag the country’s broader economy further down under 7 per cent.
The average new home price rose 15 per cent in Nanjing last month from October, and gained 11 per cent in Guangzhou. It increased 10 per cent in Beijing and 4.8 per cent in Shanghai.
