China’s housing inflation eased to its lowest level in November this year, primarily due to Beijing’s efforts to rein in high property prices.
New home prices climbed 2.2 percent last month, the weakest gain so far this year, in comparison to 2.8 percent in October.
According to the National Bureau of Statistics, 49 of the 70 key cities it is tracking witnessed a month-on-month price decrease in November, against 34 in October.
New home prices dropped 0.2 percent in November, expanding from a 0.14 percent decline in October, its first decline in 2011.
Home prices in Beijing climbed 1.3 percent in November since a year ago, against a yearly 1.7 percent rise in the previous month. Meanwhile, prices in Shenzhen, Shanghai and Guangzhou grew at a slower pace since last year.
Experts noted that the scenario was due to developers reducing prices as property market sentiment weakens.
Analysts also believe that government officials will not lift the property curbs despite the price declines.
“A continuous curb in the already weak property market does no good for the economy already showing signs of slowdown. But a relaxation [of property sector curbs] might cause a retaliatory rebound in housing prices,” said Lu Zhengwei, Chief Economist at Industrial Bank.
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