China’s home-price eases amid lacklustre demand

By BLOOMBERG

SHANGHAI • 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% from October when they increased 1.02% in the 70 cities tracked by the government, according to Bloomberg calculations.

November’s result snapped five straight months of gains above 1%.

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.

“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 Ltd, 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 this 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 signalled 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% since the start of November.