Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

Shanghai Home Prices Now Up 31% in 12 Months as Housing Fever Rages

2016/09/20 by Cheyenne Hollis 1 Comment

Housing prices in Shanghai jumped 4.4% in August after a relatively quiet July.

Housing prices in Shanghai jumped 4.4% in August after a relatively quiet July

Home prices in Shanghai, including government subsidized housing, rose by 4.4 percent last month, according to figures released by the National Bureau of Statistics. Prices in the city have risen 31.2 percent in the past 12 months as the government’s stimulus measures have made it easier for buyers to finance home purchases.

The August home price spike in China’s commercial capital has been partly attributed to talk of an increase in down payment requirements. The government has since denied any home buying curbs and, according to the Financial Times, arrested seven real estate agents for spreading the rumors which led to couples getting divorced to help facilitate purchases.

“It stirred up panic buying, with some new projects selling all their units at launch even at high prices,” Joe Zhou, head of research at JLL in China, told the South China Morning Post.

The jump in home prices comes after a July in which the Shanghai market had slowed down, recording a paltry 1.2 percent increase over June. NBS data showed China’s other tier one cities also recorded significant home price increases in August compared to July, with Beijing up 3.6 percent, Guangzhou rising 2.4 percent and Shenzhen seeing a 2.1 percent bump.

Second and Third Tier Cities Join the Party

And the return of real estate fever is not confined to China’s megacities.

Home prices in many of China’s second and third tier cities also took big jumps last month with Zhengzhou witnessing a 5.5 percent increase during August, the largest in the country. Wuxi recorded the second largest jump at 4.9 percent while Hefei saw a 4.8 increase, Fuzhou posted a 4.2 percent gain and Nanjing home prices increased by four percent.

According to the NBS, home prices rose in 64 of the 70 cities it monitors — up from 51 in July. Home prices were up an average 1.2 percent across the country, which was the largest increase in six years, with only four cities seeing prices decline. Dandong, located on the Yalu River across from North Korea, fell by 2.1 percent last month, the biggest drop in the country.

Easy Credit Fuels Home Price Growth

Economist Rosealea Yao doesn't believe housing prices in China are sustainable.

Economist Rosealea Yao doesn’t believe housing prices in China are sustainable

According to Rosealea Yao, an economist at Gavekal Dragonomics, easily obtainable credit and relatively relaxed property policies in China will continue to drive prices higher even though they have reached levels that may be unsustainable.

“Credit stimulus in the beginning of this year played a huge part in driving up prices. How to limit the liquidity in the market should be a primary concern for the government,” Yao explained to Business Insider.

BI also noted that official data shows mortgage loans account for a majority of loan growth in China. More than 70 percent of bank loans in the country during August were home loans.

Some curbing measures such as higher down payment requirements and non-resident buying restrictions have been implemented in Shanghai, Shenzhen, Xiamen and Nanjing with Hangzhou set to follow suit. These have not totally stymied soaring home prices.

“The local curbs have limited impact as home inventory has already fallen to a low level,” Jeffrey Gao, a Hong Kong-based property analyst at Nomura Holdings Inc, told Bloomberg. “Prices will not fall unless the government moves to tighten credit and add more land supply.”

Related Stories

  • China’s Housing Statistics Join the Struggle Against the BubbleChina’s Housing Statistics Join the Struggle Against the Bubble
  • Quickening Home Sales Drove China Property Investment to 16-Month High in AugustQuickening Home Sales Drove China Property Investment to 16-Month High in August
  • China Home Prices Continued to Cool in OctoberChina Home Prices Continued to Cool in October
  • China Home Price Growth Slows as Cities Re-Tighten Regulatory GripChina Home Price Growth Slows as Cities Re-Tighten Regulatory Grip

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: China home prices, daily-sp, National Bureau of Statistics, Shanghai, Zhengzhou

Sustainability Forum

Trackbacks

  1. The Sinocism China Newsletter 09.21.16 | The Sinocism China Newsletter says:
    2016/09/22 at 7:33 am

    […] Homes prices in Shanghai rise 4.4% in August | Mingtiandi Home prices in Shanghai, including government subsidized housing, rose by 4.4 percent last month, according to figures released by the National Bureau of Statistics. Prices in the city have risen 31.2 percent in the past 12 months as the government’s stimulus measures have made it easier for buyers to finance home purchases. The August home price spike in China’s commercial capital has been partly attributed to talk of an increase in down payment requirements […]

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Mingtiandi Delivered

Data Centre Forum

MTD TV

Proptech Forum: Logistics Tech

Logistics Experts Reveal How Tech Is Reshaping Asia’s Distribution Centres

Data Centre Operators Tackle APAC Expansion Challenges in MTD TV Panel

More MTD TV Videos

Latest Stories

Graeme Torre APG

APG Buys 20% Stake in Greater China Data Centre Operator OneAsia

APAC Data Centre Demand to Double Within 5 Years Says Knight Frank

crown sydney

Oaktree Lobs A$3B Bid for Packer’s Crown Stake and More Asia Real Estate Headlines

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Blackstone Selling $2.9B Aussie Logistics Portfolio to ESR-GIC PartnershipBlackstone Selling $2.9B Aussie Logistics Portfolio to ESR-GIC Partnership

Asia Real Estate People in the News 2021-04-17Asia Real Estate People in the News 2021-04-17

APG Buys 20% Stake in Greater China Data Centre Operator OneAsiaAPG Buys 20% Stake in Greater China Data Centre Operator OneAsia


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team