China: Housing market gains steam in early 2021
House prices in 70 large- and medium-sized cities increased 0.4% in February in month-on-month terms according to a weighted average index calculated by Refinitiv from data issued by the National Bureau of Statistics (NBS). The print was above January’s 0.3% reading. Tier-1 cities such as Beijing, Shanghai, and Guangzhou led the overall increase in house prices.
House prices increased 4.3% annually in February, up from January’s 3.9% rise. Annual average growth in house prices fell from 4.7% in January to 4.6% in February.
Looking ahead, the housing market—particularly in smaller, less desirable cities—is likely to lose some momentum later this year due to the impact of recent government measures to limit financial risks, including limits on property loans. However, the stronger domestic economy should provide some support.