China housing market cools amid lukewarm buyer response

Residents past by a wire frame sculpture resembling houses in Beijing. The ongoing trade war and slowing economic growth have raised hopes of a revival in buying. AP Photo

China’s home-price gains slowed in November in a further sign the nation’s property market is cooling.

New-home prices rose an average 0.98 per cent from October when they increased 1.02 per cent in the 70 cities tracked by the government, according to Bloomberg calculations based on data released by the National Bureau of Statistics Saturday. November’s result snapped five straight months of gains above 1 per cent.

Many developers registered slower sales growth in November despite offering steeper buyer discounts. A government that’s coping with a burgeoning trade war and slowing economic growth has raised hope among some market watchers that home-buying curbs won’t get any worse.

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“The bottom of the China property market -- and probably that of the Chinese economy as well -- has yet to come,” Alan Jin, an analyst at Mizuho Securities Asia, said before the data release. Things are “set for a deeper correction next year.”

Investors are scouting for clearer property signals as China’s leaders meet to hold their annual economic policy-setting talks next week. Mortgage rates broke a 22-month rising streak last month, lending data from Rong360 show, and the country’s top economic planning body has signaled a more favourable stance with regard to bond issuance from companies with solid credit ratings.

Expectations of further easing have sent an index of major builders traded in Hong Kong up almost 10 per cent since the start of November.