The average price of residential properties in Baicheng City in May: a 1.70% increase from the previous month and an increase of

Recently, the China Index Research Institute reported that according to the full-sample survey data of 100 new cities in China’s real estate index system, the Baicheng Price Index, the average price of residential buildings in 100 cities (new construction) was 11,662 yuan per square meter in May 2016. It was up 1.70% month-on-month and the increase was 0.25 percentage point higher than the previous month. In terms of the number of cities that rose or dropped, 74 cities rose month-on-month, 24 cities fell month-on-month, and 2 cities remained flat. Compared with the previous month, the number of cities with a month-on-month increase in price rose by 3, including 29 cities with a rise of more than 1%, a decrease from the previous month; the number of cities with a month-on-month decrease in this month decreased by 1, all Falling cities have fallen within 1%. From a year-on-year perspective, the average price of residential buildings in 100 cities (newly built) increased by 10.34% over the same period of last year, an increase of 1.36 percentage points from the previous month. According to the median calculation, the median price of housing for 100 cities (newly built) nationwide was 7,104 yuan per square meter, which was a month-on-month increase of 0.55% and a year-on-year increase of 2.69%. In addition, Beijing, Shanghai and other ten cities (new) residential average price of 22,113 yuan / sq m, the chain rose 1.93%, an increase of 0.40 percentage points over the previous month; rose 15.48% year on year, or 1.06 percentage points increase over the previous month.

 

As a whole, the average price of residential properties in Baicheng City continued to rise steadily in May. The increase in first-tier cities was basically the same as that in the previous month. The growth rate in second-tier cities further expanded, while that in third-tier cities narrowed slightly. In terms of policy, the land market in second-tier hotspot cities such as Suzhou continues to heat up this year, and the land kings are frequent. In order to stabilize the market, the Suzhou government has urgently issued a land “price limit order” to guide housing enterprises to rationally gain land and prevent overheating of the land market; most stocks The three or four-tier cities with greater pressure have continued to loose their policies. Shandong, Anhui and other provinces have introduced a series of measures to encourage migrant workers to purchase houses in cities, develop rental markets, and reduce the cost of home purchases, so as to promote the release of demand. On the supply side, the push volume in key cities continued to be released steadily, and the level of de-suffering remained high. On the demand side, overall transaction growth in first-tier cities continued to slow, with Shanghai and Shenzhen both declining compared to the previous quarter. The effects of policy tightening in second-tier hotspot cities such as Nanjing showed signs of improvement, with volume falling back from the previous month, but the year-on-year increase remained at a high level.

 

Looking into the future, some cities still have overheating risks in the property market and the land market. The government  will continue to monitor closely, issue regulatory policies in due course, and stabilize market development. In terms of prices, some hot second-tier cities have various types of demand growth, and the contradiction between supply and demand has been deepened. In the short-term, supply growth has been limited, and house prices are still rising. At the same time, frequent high-priced land has also increased expectations for future housing prices. If the government takes effective measures to curb the release of investment demand, housing prices may gradually stabilize.

 

May 2016 Baicheng New Home Price Index