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
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asian Capital in Australia Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

China’s Rising Home Prices Could Bring Clampdown on Top-Tier Markets

2016/06/05 by Andrew Esqueda 2 Comments

Shenzhen home prices

Shenzhen saw home prices rise by 63.4 percent in the last year

A new round of market controls could be on the way in China’s largest cities, according to Moody’s Investors Service.

The credit ratings agency made its prediction following news that home values in China’s 70 major cities extended their gains in April 2016 with 46 cities recording price increases on an annualized basis — up from 40 in March.

First-Tier City Price Increases Could Become Policy Targets

“We believe tightening in policy measures could be targeted at cities with strong price growth, but will not be applied uniformly nationwide. Policies will remain supportive in lower-tier cities, where property prices remain sluggish,” said Moody’s vice president and senior credit officer Franco Leung said in a statement.

According to data released last week by the China Index Academy, the number of cities recording an increase of 5 percent or more during May rose to 17 cities from 14 during June. Larger cities including Shenzhen, Shanghai, Nanjing and Wuhan experienced robust growth with Shenzhen registering a 63.4 percent year-on-year gain followed by Shanghai at 34.2 percent.

Significant price increases have in the past triggered government tightening measures such as higher down payment requirements and limits on buyer eligibility, which went into place in Shanghai and Shenzhen in March this year. These restrictions even provoked a local government clampdown in the eastern Chinese city of Suzhou after a buying spree from investors spurred a 54 percent rise in homes values in the year to April.

Moody’s Leung believes, however, that further restrictions would most likely be limited only to cities that have experienced strong price growth, while lower-tier cities will enjoy accommodative policies especially considering their tepid performance.

Single-Digit Sales Growth Expected by 2017

The agency also predicts that home sales in China will decelerate to single-digit growth by May 2017 after increasing by 16.6 percent in 2015 and going up by 32 percent in the 12 months ending April this year.

The monthly report also notes that, out of 50 Chinese developers rated by Moody’s, nearly half had negative rating outlooks as of May 2016, including one of China’s biggest cross-border real estate investors Shanghai-based Greenland Holding Group.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: daily-sp, Franco Leung, Moody's Investors Service

Trackbacks

  1. The Sinocism China Newsletter 06.05.16 | The Sinocism China Newsletter says:
    2016/06/06 at 8:27 am

    […] China’s Rising Home Prices Could Bring Clampdown | Mingtiandi “We believe tightening in policy measures could be targeted at cities with strong price growth, but will not be applied uniformly nationwide. Policies will remain supportive in lower-tier cities, where property prices remain sluggish,” said Moody’s vice president and senior credit officer Franco Leung said in a statement. According to data released last week by the China Index Academy, the number of cities recording an increase of 5 percent or more during May rose to 17 cities from 14 during June. Larger cities including Shenzhen, Shanghai, Nanjing and Wuhan experienced robust growth with Shenzhen registering a 63.4 percent year-on-year gain followed by Shanghai at 34.2 percent. […]

  2. China’s Rising Home Prices Could Bring Cl... says:
    2016/06/07 at 10:22 pm

    […] A new round of real estate market controls could be on the way in China’s largest cities, according to credit ratings agency Moody’s Investor Services.  […]

Leave a Reply

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

Get Mingtiandi Delivered

Logistics forum 2022 Web banner

MTD TV

mtd tv sustainable data centres

Efficiency, Design and Green Power Key to Data Centre Sustainability: MTD TV

bdx spotlight interview mtd tv thumbnail

BDx Boss Focuses on Service, Not Buzz, to Build Asia Data Centre Network: MTD TV

More MTD TV Videos

Latest Stories

kenny lam manulife

Link REIT Hiring Outgoing Manulife IM Exec Kenny Lam as Co-CIO

kuok khoon hua

China Resources Logistics Adds Fifth HK Industrial Asset in Two Years

Amelie-Delaunay

GLP Leads Real Estate Fund Managers in APAC, Bumps CapitaLand From Global Top 10

Sponsored Features

Rosanna Tang Colliers

Office Upgrades Jump After Omicron Slowed Hong Kong Market in Q1 Sponsored Feature

Bernie Devine

Is Your Building a Device? Sponsored Feature

Vietnam’s BW Acquires First Assets in Long An Province as Growth Continues Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

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


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.