Chinese home prices fell for the consecutive week in November. Evidently the effects of Beijing's interest rate cut have not yet had repercussions on the local real estate market. The median price for a new house in China's 10.589 major cities was 1.736 yuan (equivalent to US$0,38) per square meter last month, down 0,40% from October, according to data provided by the independent institute. China Index Academy. The decrease actually represents a slight improvement over the month-over-month fall of XNUMX% realized in October.
"We expect the interest rate cut to start taking effect from the beginning of 2015," said Bai Yanjun, research director of the China Index Academy. "We believe the market will remain under pressure for the remainder of 2014 as the current level of real estate inventory in major and outlying cities remains very high."
China cut rates on both loans and deposits about a week ago and analysts expect the real estate market to be among the biggest beneficiaries of the move. "The cut sends a strong signal that the property market will bottom out very soon," said Lu Ting, China economist at Merrill Lynch Hong Kong, in a note.
On an annual basis, the price of new homes in China in November fell by 1,57% compared to the same month in 2013, realizing a greater fall than the 0,52% annual loss realized in October. However, in China's ten largest cities — which tend to have more active markets than the national average — prices rose 0,07% between October and November, marking the first gain after six months of decline. The city of Shanghai is the one that has achieved the best performance, with prices equal to 32,140 yuan per square meter (+1,8% month on month), becoming the second most expensive city after Beijing.
Attachments: Japan Today
