Second - and third tier cities are falling, with prices of new houses in 70 cities in China rising in July compared to the previous month in 20 cities. Sales prices | commodity residential | new houses
In July, housing prices in 70 large and medium-sized cities in China were still in the adjustment stage.
In that month, the number of cities with rising housing prices continued to decrease. According to data released by the National Bureau of Statistics of China on the 16th, in July, among 70 large and medium-sized cities, there were 20 and 6 cities with month on month increases in the sales prices of newly-built and second-hand residential properties, respectively, a decrease of 11 and 1 compared to the previous month.
The sales prices of newly-built commercial residential properties in various tier cities remained unchanged or decreased month on month. Sheng Guoqing, Chief Statistician of the Urban Department of the National Bureau of Statistics, pointed out that in July, the sales prices of newly-built commercial housing in first tier cities remained unchanged for two consecutive months compared to the previous month; The sales price of newly-built commercial residential properties in second tier cities decreased by 0.2% compared to the previous month, which remained unchanged; The sales price of newly-built commercial residential properties in third tier cities decreased by 0.3% month on month, with a 0.2 percentage point increase compared to the previous month.
According to Zhang Bo, the director of 58 Anjuke Research Institute, based on the housing price data in July, the overall real estate market is still in a downward phase, with slightly insufficient momentum for stabilization and recovery. The signals related to real estate policies in July were relatively dense, but due to the lack of comprehensive implementation of specific policy details in first and second tier cities, the actual effectiveness of the policies still needs to gradually become apparent after August.
Zhang Bo pointed out that it is important to pay attention to the month on month decline in new housing prices in second tier cities. In July, although the prices of new houses in Chengdu, Haikou, Xi'an and other places still slightly increased compared to the previous month, the prices of second-hand houses have begun to decline, and market wait-and-see sentiment has begun to spread. Recently, there have been rumors in many second tier cities that policies will be introduced to reduce the down payment ratio for second homes, which will have a positive effect on improving the entry of sexual demand. However, market differentiation can lead to differences in the effectiveness of supportive policies in different cities.
Beike Research Institute believes that overall, housing prices in large and medium-sized cities in China have entered a downward adjustment phase, and the main reason for the price decline is a change in the supply and demand relationship in the market. Official data shows that from January to July, the completed residential area increased by 20.8% year-on-year, and the unsold area increased by 19.5% year-on-year; But in terms of demand, sales continue to weaken.
However, spokesperson for the National Bureau of Statistics, Fu Linghui, recently stated that the overall real estate market is currently in a stage of adjustment, and some real estate companies are facing certain difficulties in their operations, especially some leading real estate companies that have exposed debt risks, which has affected market expectations. However, these issues are temporary. Beike Research Institute pointed out that China's housing demand, especially the demand for improvement, is still significant. With the implementation of the policy of ensuring the delivery of properties and measures to mitigate the debt risk of real estate companies, future demand entering the market can help stabilize housing prices.
