In line with the 10.7 percent increase in the prices of new homes in China, it grew up by 10.4 percent in May. Although the cooling measures are in place, calculations from Reuters still display strong demands. In a bid to moderate the prices of property, the Chinese government has employed cooling measures, but the market sentiment is still strong.
Analysts speak on the home price scenarios in May
An ex-Japan analyst, Alan Jin said that tightening is an effort that moves from the top to the ground, but the market sentiment remains valid. Jin stated that he envisages a possible scenario where prices drop monthly till the end of the year with the increase in mortgage rate swing factor.
Reuters made it clear that the on-year gains in prices of homes went long past 12.6 percent in November, making the fifth consistent month of declining gains. Following the April home prices, May had the prices of homes in over 70 cities going up by o.7 percent.
In May, the prices of homes in Beijing rose by 13.5 percent down from April’s 16 percent. Likewise, the home prices in Shanghai rose 11 percent in May from its 13.2 percent in April. Then again, home prices in Shenzhen took the way up from 6.6 percent in April to 5.4 percent in May, counting a year back. In line with the home prices in other places in China, that of Guangzhou rose 19.4 percent from 21.6 percent in the last month.