Moody's: China home prices cool further in face of continued regulatory measures

The US-based ratings agency, Moody’s Investors Service, out with its latest report on the Chinese property prices.

Key Points:

China's residential property prices have cooled further in view of the implementation of tight controls in major cities since September 2016 aimed at curbing price rises by dampening investment and speculative activity

Kaven Tsang, a Moody's Vice President and Senior Credit Officer, noted: "Price growth in tier 1 and 2 cities is likely to remain muted in the next 6-12 months as the current tight regulatory measures are unlikely to see any loosening."  

Home prices in China's four tier 1 cities declined for the first time in 2017 by 0.3% month-on-month in August, after two consecutive months of flat month-on-month growth in June and July.

This level is lower than the 2%-4% average monthly growth recorded prior to September 2016, when the government introduced its current restrictions.

Meanwhile, major tier 2 cities recorded slower month-on-month price rises of 0.1% in August 2017, compared with 0.4% in July 2017.