China Jan. Home Prices Worst in a Year
Prices in 47 of the cities fell, while home values in the remaining 23 were unchanged from December, the National Statistics Bureau said in a statement on its website on Feb. 18. New home prices in the nation’s four major cities of Shanghai, Beijing, Shenzhen and Guangzhou declined for a fourth month. None of the cities posted gains in home prices for the first time since the government began releasing at the start of 2011 prices for 70 cities surveyed instead of a national average.
The eastern city of Wenzhou posted the biggest drop for the third month, with home prices declining by 0.6 percent in January, according to the Statistics Bureau. A credit squeeze on smaller businesses in the city prompted a visit and pledge of financial aid from Wen in October.
“Wenzhou and other eastern coastal cities are liquidity- sensitive,” said Alan Jin, a Hong Kong-based property analyst at Mizuho Securities Asia Ltd., adding that prices dropped in these cities as “entrepreneurs with high-yield debt may have just sold off their properties for cash.”