China: Home prices rise further in May – Nomura

In China, the simple average of property price inflation across 70 cities rose in May, up 0.2 percentage points (pp) to 0.8% m-o-m, points out the research team at Nomura.

Key Quotes

“The number of cities with sequentially higher prices increased to 61 in May from 58 in April, while the number of cities with lower or flat prices fell to just nine.”

“Property price inflation in Tier-1 cities rose to 0.3% m-o-m in May from 0.0% in April, purely driven by prices in Guangzhou which grew 1.8% m-o-m after a -0.1% dip in April. Price inflation in the other three Tier-1 cities either declined or remained flat.”

“Property price gains in Tier-2 cities also accelerated, by 0.4pp to 0.9% in May, likely boosted by those cities’ policies to attract talent. Price inflation in Tier-3 and 4 cities rose a modest 0.1pp to 0.7%.”