The National Bureau of Statistics announced the sales price index of commercial housing in 70 large and medium-sized cities in July this year
The prices of new residential buildings in the first- and third-tier cities in the whole year increased year-on-year, all falling from the growth rate in June. On a monthly basis, the prices of second-hand homes in a total of 20 cities have declined, reflecting that the mainland property market is cooling.
The mainland property market is cooling down
According to data from the National Bureau of Statistics, Guangzhou’s July increase in new residential prices in the four largest first-tier cities in the Mainland was still strong, rising 10.2% year-on-year, but down 0.3 percentage points from the year-on-year growth rate in June. Liu Jianwei, senior statistician of the Urban Affairs Bureau of the National Bureau of Statistics, said that the prices of new residential buildings in the first, second and third tier cities rose by 0.1, 0.7 and 0.7 percentage points respectively compared with June.
On a monthly basis, the price of new residential buildings in 60 cities rose in July, down from 63 in June. The largest city to rise was Pingdingshan City in Henan, which rose 1.6% month-on-month. According to Yan Yuejin, research director of the think tank center of the Yiju Research Institute, the property prices of some non-hot cities began to rise, and the mainland government may strengthen regulation.
Bank’s economic forecast is 6.2%
In terms of second-hand residential prices, first-tier cities rose 0.2% year-on-year, unchanged from June. Second- and third-tier cities rose 6.7% and 7.1% respectively, down 0.9 and 0.8 percentage points respectively from June. According to foreign statistics, the increase in the price index of new residential buildings in the seventy-seven large cities in July was the low for the year.
In fact, many economic data in the Mainland have slowed down in July, but the regulation of the property market has not yet relaxed. Some institutions are bearish on the growth rate of the gross domestic product (GDP) in the Mainland. The slag report said that the mainland’s economic data in July was weaker than expected, and industrial profits contracted, or to crack down on corporate investment activities in the second half of the year, coupled with the global economic slowdown and the United States to impose tariffs, etc., which caused the downward pressure on the mainland economy to intensify. The bank lowered its GDP growth forecast for the mainland this year and next year from 6.5% and 6.3%, both to 6.2%.