China August New-Home Prices: Tier-1 Cities Turn Positive as Investment Falls 19.9%
China's National Bureau of Statistics reported that in August new-home prices in tier-1 cities rose 0.1% month on month, reversing flat July readings, while tier-2 and tier-3 cities fell 0.1% and 0.2%. Shanghai led with a 3.0% year-on-year gain. Over January to August, national real estate development investment fell 19.9% to RMB 47,979 billion, with new-home sales down 12.1% by area and 13.0% by value.
The National Bureau of Statistics on September 15 released changes in commercial residential sales prices across 70 large and medium-sized cities, along with national real estate market conditions for January to August. In August, new commercial residential sales prices in tier-1 cities shifted from flat in the previous month to a 0.1% month-on-month increase, while tier-2 and tier-3 cities declined 0.1% and 0.2% respectively. Among the 70 large and medium-sized cities, 21 recorded month-on-month increases or flat new-home prices, two fewer than the previous month. Fifteen cities posted month-on-month new-home price gains in August, while six were flat.
Shanghai's new-home prices rose 3% year on year and 0.4% month on month in August, the largest gains on both measures. Its second-hand home prices rose 0.3% month on month, leading the 70 cities, and fell 0.8% year on year, the smallest decline among the 70. Among tier-1 new commercial homes, Shanghai, Guangzhou and Shenzhen rose 0.4%, 0.1% and 0.2% month on month respectively, while Beijing fell 0.2%. Year on year, Beijing, Guangzhou and Shenzhen fell 2.3%, 1.9% and 2.3% respectively, while Shanghai rose 3.0%. Month-on-month declines in tier-2 and tier-3 cities generally narrowed, with year-on-year falls of 2.7% and 4.1% respectively, each narrowing by 0.1 percentage point.
In August, second-hand residential sales prices in tier-1 cities rose 0.1% month on month, the sixth consecutive monthly increase. Shanghai and Shenzhen rose 0.3% and 0.1% respectively, Guangzhou was flat, and Beijing fell 0.1%. Year on year, second-hand home prices in tier-1 cities fell 2.7% overall, with the decline narrowing by 1.0 percentage point from the previous month. Second-hand home prices in tier-2 and tier-3 cities both fell 0.3% month on month and 4.9% and 5.6% year on year respectively.
From January to August, national real estate development investment totaled RMB 47,979 billion, down 19.9% year on year on a comparable basis; residential investment was RMB 37,017 billion, down 19.7%. Floor space under construction by real estate developers was 5,607.70 million square meters, down 12.8% year on year; newly started floor space was 298.94 million square meters, down 24.8%; completed floor space was 210.97 million square meters, down 23.7%. National new commercial housing sales area was 498.80 million square meters, down 12.1% year on year; sales value was RMB 47,470 billion, down 13.0%, with the decline continuing to narrow. From January to August, online-signed second-hand housing transaction area was 549.23 million square meters, up 10.6% year on year.