China's housing market is slowing down, potentially creating a headwind for commodity prices in the period ahead. According to data released by China's National Bureau of Statistics (NBS) on Friday, new property prices grew by just 0.4% in July, a steep deceleration on the 0.7% gain one month earlier. As a result, price growth over the past year slowed to 9.7%, the weakest increase since July last year. According to Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank, the national slowdown largely reflects a pronounced deceleration in price growth in the nation's largest cities. "Chinese policymakers look to have succeeded in slowing property price growth in China’s larger cities," he says, noting that it "reflects the impact of stricter measures on purchasing property". Over the month, prices in China's tier-one cities -- the largest of the large -- fell fractionally while those in mid-sized tier-two centres grew by just 0.2%, well below the levels reported throughout the course of 2016. While Dhar admits the rapid slowdown in larger centres will be welcomed by policymakers who were facing the prospect of an "uncontrollable property bubble", he notes that prices in tier-three cities -- the smallest of all those monitored by the NBS -- continued to accelerate, growing by 0.8% from a month earlier. Although this likely reflects ongoing attempts from policymakers to reduce unsold housing inventory in these cities, Dhar cautions that continued price strength could see buying restrictions extended to smaller centres to reduce what the People's Bank of China deems to be growing “regional bubble risks”. "The recent success of policymakers to reign in property price growth amongst China’s larger cities look set to extend to third-tier cities," he says.
China's Housing Market Slowdown Presents A New Risk For Commodity Prices
feedback@businessinsider.com (Business Insider Australia), Business Insider
Sun, 08/20/2017 - 7:39am
Topics: china's national bureau statistics nbs vivek dhar commonwealth bank chinese while dhar people's bank read business insider australia china's china nbs july dhar china s slowdown risk commodity prices cities property policymakers larger centres growth months reflects month year bubble slowed grew construction earlier deceleration data continued reduce mortgage slowing volumes growing largest
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more