19 May 2015
China: More signs of divergence in the property sector - Nomura
FXStreet (Bali) - Recent Chinese House prices index data continues to provide more signs of divergence in the property sector, with third- and fourth-tier cities still struggling with oversupply despite policy easing, notes the Asia Economics Team at Nomura.
Key Quotes
"Data released by the National Bureau of Statistics (NBS) suggest that overall property prices in the 70 cities surveyed stabilised somewhat in April. The number of cities that experienced lower prices (month-on-month) dipped to 48 from 50, while 18 saw prices rise (up from 12), helped by further policy easing in the sector."
"A breakdown shows greater divergence between tiers. Toptier cities experienced a 1.0% m-o-m price increase in April after a 0.2% rise in March. The price decline in tier-two cities was unchanged at -0.1%. However, prices in third-tier cities fell by 0.3% after a 0.2% drop in March."
"The property price data for April are in line with our views of growing divergence between regions, with top-tier cities benefitting the most, while oversupply, especially in the third and fourth tiers may remain a drag on investment. We maintain our view of weak property investment through 2015."
Key Quotes
"Data released by the National Bureau of Statistics (NBS) suggest that overall property prices in the 70 cities surveyed stabilised somewhat in April. The number of cities that experienced lower prices (month-on-month) dipped to 48 from 50, while 18 saw prices rise (up from 12), helped by further policy easing in the sector."
"A breakdown shows greater divergence between tiers. Toptier cities experienced a 1.0% m-o-m price increase in April after a 0.2% rise in March. The price decline in tier-two cities was unchanged at -0.1%. However, prices in third-tier cities fell by 0.3% after a 0.2% drop in March."
"The property price data for April are in line with our views of growing divergence between regions, with top-tier cities benefitting the most, while oversupply, especially in the third and fourth tiers may remain a drag on investment. We maintain our view of weak property investment through 2015."