NBS: New house prices in China rise slower in first-tier cities in Dec

Thursday, 16 January 2020 12:13:39 (GMT+3)   |   Shanghai

In December this year, of 70 major Chinese cities surveyed, new house prices in first-tier cities increased by 0.2 percent month on month, 0.4 percentage points slower than the growth recorded in November, as announced by China's National Bureau of Statistics (NBS). Meanwhile, in second-tier cities the month-on-month growth rate of new house prices in December was 0.3 percent, 0.1 percentage point faster compared to the year-on-year growth rate in November, while in third-tier cities the month-on-month growth rate of new house prices in December was 0.6 percent, up 0.1 percentage point compared to the increase rate in November.

In China’s second-tier cities, prices of second-hand house prices in December saw a year-on-year rise of 3.7 percent, 0.2 percentage points slower compared to the year-on-year growth rate in November. In third-tier cities, the year-on-year growth rate of second-hand house prices in December was 3.9 percent, 0.2 percentage points slower compared to the year-on-year growth rate recorded in November.

In December, new house prices and second-hand house prices in second-tier cities saw slower year-on-year growth for the eighth consecutive month, while new house prices in third-tier cities saw slower or the same year-on-year growth for the ninth consecutive month.

China’s cooling policy to control speculation in the real estate market has been effective, especially in second-tier and third-tier cities. 

Market participants and investors think that the real estate sector in China may show a better performance in 2020, which will positively affect the steel market, especially the market for rebar and wire rod used in construction.

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