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China House Prices Fall in 50% of Cities

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China home prices fell in a record 37 of 70 cities tracked by the government in March as officials pledged to keep restrictions on property purchases that have sapped buyer demand.

The eastern city of Wenzhou led declines with a 9 percent slump in values from a year earlier, while Beijing and Shanghai recorded drops of 0.8 percent, according to data released by the statistics bureau today.

Today’s release underscores forecasts for China’s economic growth to slow further this quarter after the rate reached the lowest level in almost three years in the three months through March. Momentum in the real-estate industry is “too strong to reverse” for now, according to Li Daokui, a former adviser to the nation’s central bank.

“Alternative drivers of GDP growth will have to take some time to come in, to fill in the vacuum,” Li said today in an interview with Bloomberg Television from Sydney, citing water, rail and public-housing projects as future contributors to the expansion. Policy makers are aiming to balance reining in property speculation without hobbling growth, he said.

The benchmark Shanghai Composite Index rose 2 percent, part of a rally across Asia after the International Monetary Fund boosted global economic estimates and Spain sold more debt than targeted.

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
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