China's property market slowdown looks like may be over -- for now

Photo by Kevin Frayer/Getty Images
  • Chinese new home prices accelerated in March.
  • Prices rose in 55 of the 70 cities monitored, up from 44 in February.
  • Annual growth in prices stood at 4.9%, and appears to be stabilising.

Chinese new home prices appear to be stabilising after a regulator-enforced slowdown that began in late 2016.

According to China’s National Bureau of Statistics (NBS), prices rose by 0.4% in March based off calculations from Reuters, leaving the change on a year earlier at 4.9%.

The monthly increase was double the pace seen in February.

Of the 70 cities monitored, the NBS said prices rose in 55, up from 44 in February. Five recorded no price change while 10 saw prices decline.

While annual price growth fell from 5.2% in February, leaving it at the lowest level since March 2016, the decelerating trend that began in late 2016 now appears to have largely run its course.

Over the year, prices fell by 0.6% in Beijing, double the decline reported in Shanghai. Prices in Shenzhen, previously China’s hottest housing market, also slid 2.3%.

In contrast, prices in Tianjin, Guangzhou and Chongqing rose by 0.4%, 0.8% and 7.7% respectively over the same period.

In a separate report released this week, the NBS said Chinese property investment grew 10.4% from a year earlier in the three months to March, the strongest result since the first quarter of 2015.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.