Housing in big cities stays cool

It’s been a blistering summer so far, but housing prices in the Greater Bay Area’s three biggest cities have been cool. In Hong Kong, there are no points for guessing why recent home sales have seen developers cut prices, while even the secondary markethas seen weakness, and the outlook appears bleak. Guangzhou and Shenzhen, meanwhile, are treading water as the central government has maintained its stance that “housing is for living not for speculation”. 

Data released by the National Bureau of Statistics showed that new home prices in the four first-tier cities grew 0.3% from the previous month, representing a 0.1 percentage point increase. Beijing and Guangzhou grew by 0.6% and 0.3% respectively, while Shenzhen remained unchanged and Shanghai was down 0.1%.

Price of second-hand homes in these four cities recorded a slight increase of 0.3%. Shanghai, Guangzhou and Shenzhen grew by 0.4%, 0.4% and 0.7% respectively, while Beijing was down 0.3%. 

New home price in the 31 second tier cities increased by 0.7% from the previous month, down 0.1 percentage point. The price growth of the 35 third-tier cities remained the same at 0.7% in July. No detailed data was available for GBA cities.

Industry observers also said that the central government will continue its cooling measures in order to stabilize the land price, the home price and the investor expectation. Going forward, housing price is most likely to maintain its current trend. 

Between January and July, investment in real estate development achieved RMB7.2 8trillion, up 10.6% year-on-year, although the growth downed 0.3 percentage points compared to the first six months of the year. The area of housing sold from January to July reached 887.83 million square meters, down 1.3% year-on-year. 

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