The National Bureau of Statistics released data on the sales prices of commercial housing in 70 large and medium-sized cities in December last year
Preliminary estimates show that the price of new buildings in first-tier cities rose by 0.2% month-on-month, a decrease of 0.4 percentage point from November. Compared with the same period in 2018, it rose by 3.8%, and the increase was 1.1 percentage points lower than in November. However, the price of new buildings in 50 cities rose month-on-month in this month, an increase from 44 cities in November, with Yangzhou rising 1.3% as the highest.
Although there have been “unbundling” news from the Mainland’s regulatory measures in several cities this month, analysis indicates that the impact on property prices has not yet surfaced.
Experts expect half of the year
According to Ji Yanxun, director of Knight Frank Greater China’s research and consulting department, the number of cities whose property prices have increased by the monthly increase is mainly due to seasonal factors. Although there have been “unbundling” news from the mainland’s regulatory measures in several cities this month, the impact of the measure on property prices has not yet surfaced.
He pointed out that the authorities are still premised on restricting large changes in property prices. It is expected that remote and low-tier cities will be willing to introduce looser housing policies to promote property prices. According to other estimates, property prices in first-tier cities and the Greater Bay Area cities may increase by 3 to 5%, and second- and third-tier cities will increase by 2 to 3% this year.
Runchi Chuan spins off property listing
In addition, the media reported that China Resources Land (01109) is considering splitting its property management business to be listed in Hong Kong this year, raising about 500 million US dollars (about 3.9 billion Hong Kong dollars), and has invited potential listing consultants to discuss. In recent years, there has been a continuous listing of sub-sector businesses of real estate companies. Last year alone, nine domestic real estate management companies have gone public in Hong Kong.
Yesterday, China’s housing stocks generally performed well. Gemdale Real Estate (00535) rose 17.14% to 1.23 yuan. Logan Real Estate (03380) and Hope King Pacific (01813) rose more than 6%. However, the leading real estate company, China Evergrande (03333), announced that it would issue USD debt to raise funds, and its stock price fell slightly by 0.89%.
In addition, Goldman Sachs issued a report saying that it has a positive view on property management stocks and stimulates related stocks to do a good job. Among them, Binjiang Services (03316) and Hehong Services (06093), which were listed last year, rose by more than 10%, and Xincheng Yue Service (01755) Up 9.22%.