In November this year, of 70 major Chinese cities surveyed, new house prices in first-tier cities increased by 4.9 percent year on year, while rising by 0.6 percent month on month, as announced by China's National Bureau of Statistics (NBS). Meanwhile, in second-tier cities the year-on-year growth rate of new house prices in the given month was 7.9 percent, 0.8 percentage points lower compared to the year-on-year growth rate in October, while the growth rate was up 0.2 percent month on month.
In China’s first-tier cities, prices of second-hand house prices in November saw a year-on-year rise of 1.0 percent, 0.5 percentage points higher compared to the year-on-year growth rate in October. In second-tier cities, the year-on-year growth rate of second-hand house prices in November was 3.9 percent, 0.5 percentage points lower compared to the year-on-year growth rate recorded in October.
China has continued its efforts to restrict speculation in the real estate market, especially in second-tier and third-tier cities, with the growth in new house prices and second-hand house prices in these cities slowing down in November, though the increase in house prices in first-tier cities is still larger as houses there are still more attractive for buyers.
Market participants and investors think that the real estate sector in China may perform better in 2020, which will exert a positive impact on the steel market, especially for rebar and wire rod.