China’s September 70-city housing price index has shrunk to 3.8% year-on-year

Reuters calculated based on data released by the National Bureau of Statistics of China on Wednesday. In September, the price index of newly built commercial housing in 70 large and medium-sized cities rose by 3.8% year-on-year, down from 4.2% in the previous month. The upward trend continued for 72 months. The increase was the lowest since December last year; it was flat on a month-on-month basis, the first time since February last year, and was 0.2% last month.

According to calculations, among the 70 large and medium-sized cities in September, the price index of newly built houses increased by 27 month-on-month (previous month: 46); seven were unchanged (four in the previous month); and 36 were down (20 in the previous month).

“The sales price of commercial residential buildings in 70 large and medium-sized cities has shown a slight decline from the previous month, and the year-on-year increase has continued to fall.” said Sheng Guoqing, chief statistician of the City Department of the Bureau of Statistics.

The Bureau of Statistics estimates that in September, the sales price of newly-built commercial residential buildings in first-tier cities rose 0.3% month-on-month to remain unchanged from the previous month. In second-tier cities, the month-on-month increase was 0.2% to flat. The month-on-month ratio in third-tier cities changed from flat last month to a decline of 0.2%.

The China Index Research Institute released the “Price Index for Newly Built Residential Buildings in 100 Cities” at the beginning of the month, showing that in September, the average price of newly built residential buildings in 100 cities across the country was RMB 16,175 per square meter, a year-on-year increase of 3.40% and a decrease of 0.11 percentage points from the previous month; a month-on-month increase of 0.14. %, a decrease of 0.06 percentage points from the previous month.

From the perspective of the number of rising and falling cities, the number of cities that fell in the middle of the hundred cities increased by three to 33 from the previous month. Looking ahead to the fourth quarter, real estate financial supervision is still strict, and market adjustment pressures in some cities have increased. Market competition may become more intense. Accelerating sales and payment collection is still the primary task of enterprises.

Since January 2018, the National Bureau of Statistics has cancelled the statistical indicators for the sales price of affordable housing, and only compiles and publishes the sales price index for newly-built commercial residential buildings, and no longer compiles and publishes the sales price index for newly-built residential buildings.

The following is the year-on-year and month-on-month changes in the price index of newly built commercial housing in 70 large and medium-sized cities calculated by Reuters:

YoY (%) MoM (%)

September3.8 0

August 4.2 0.2

July 4.6 0.3

June 4.7 0.5

May 4.9 0.6

April 4.8 0.6

March 4.6 0.5

February 4.3 0.4

January 3.9 0.3

December 2020 3.8 0.1

November 4 0.1

October 4.3 0.2

September 4.6 0.3

August 4.8 0.6

July 4.8 0.5

June 4.9 0.6

May 4.9 0.5

April 5.1 0.5

March 5.3 0.1

February 5.8 0

January 6.3 0.2

December 2019 6.6 0.3

November 7.1 0.3

October 7.8 0.5

September 8.4 0.5

August 8.8 0.5

July 9.7 0.6

June 10.3 0.6

May 10.7 0.7

April 10.7 0.6

March 10.6 0.6

February 10.4 0.5

January 10 0.6