Chinese Home Prices Still Rising in May, Top Cities Show Signs of Exhaustion

Chinese new home prices climbed 0.74 percent nationally in May. Smaller cities saw the largest increases, such as 3.4 percent in Bengbu. The count of cities with rising prices dropped by two as the market is clearly plateauing. Price follows volume.

Top-tier plus Xiamen accounted for only 1 percent of the increase. They're down to 10 percent of the 9.5 percent yoy national price increase.
The seven hot tier-two cities I track declined in May, and they only account for 16 percent of the national increase yoy.

Measures such as the converted housing regulations and changes to school admission policies in Beijing did bite into existing home prices. Nationally, existing home prices rose 0.57 percent in May, 7.8 percent yoy.
The top-tier and Xiamen saw an average price decrease. Combined with the seven tier-two cities, these 12 accounted for only 4 percent of the national existing home price increase in May.

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