China Jan new home price growth quickens – private survey

BEIJING, Feb 1 (Reuters) – New home prices in China rose at a slightly faster pace in January, with markets in the eastern and southern coastal regions remaining firm as prices in the north declined, a private survey showed on Monday.

New home prices in 100 cities rose 0.37% in January from a month earlier versus a 0.25% gain in December, according to data from China Index Academy (CIA), one of the country’s largest independent real estate research firms.

On an annual basis, new home prices rose 3.56% last month, slightly outpacing December’s 3.46% gain.

The price rises continued to be led by cities in the southern Pearl River Delta and eastern Yangtze River Delta, while prices of new homes in the Beijing-Tianjin-Hebei region eased.

“In some cities severely affected by the COVID-19 epidemic, some projects were put on sale, thus new home prices dipped marginally,” said CIA Research Director Cao Jingjing.

Fewer cities reported monthly gains, with the number falling to 64 from 79 in December, and 34 cities posted lower home prices, compared with 19 in the preceding month.

China’s property market recovered quickly from the COVID-19 crisis last year, mostly in bigger cities. But rising prices have prompted top-tier cities including Beijing, Shanghai and Shenzhen to ramp up regulations on home transactions and the flow of funds into the sector.

Land sales by volume in 40 major cities fell 68% in January from December, and only rose 1% on an annual basis, separate CIA data showed.

To help curb the coronavirus, China has urged people not to travel during this month’s Lunar New Year holidays, a time when many people return to their provinces to buy homes. Cao said this could lead to more buying in the cities where people work.

Bigger cities may therefore see further upside in home prices, which could lead to more policy tightening, Cao said.

A Reuters poll released on Monday found China’s home prices are expected to rise at a slower pace this year, while sales will likely be flat.

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