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CHINA PROPERTY DIGEST: Home price rises ease on new curbs
June 24, 2013 / 4:57 AM / 4 years ago

CHINA PROPERTY DIGEST: Home price rises ease on new curbs

BEIJING, June 24 (Reuters) - Here is a look at the latest news, numbers and more from China’s real estate market.

Property investment accounted for 11 percent of China’s gross domestic product in the first quarter of 2013 and it affects 40 other industries.

REUTERS NEWS JUNE 19 - Wanda Group, China’s largest commercial real estate developer, aims to invest about $1 billion to build a five-star hotel in New York as its third major investment outside its home market, Chairman Wang Jianlin said. JUNE 18 - China’s home price rises slowed for a second straight month in May from the previous month, in a sign that Beijing’s attempts to bring stability to a frothy property market are having some effect. JUNE 5 - Chinese developer China Overseas Land and Investment Ltd was the winning bidder for two residential sites in Hong Kong, bidding a total HK$4.54 billion ($584.96 million), the Hong Kong government said in a statement. JUNE 5 - China Vanke, the country’s largest real estate developer, said that it sold 14.16 billion yuan ($2.3 billion) worth of property in May, up 32.1 percent from the previous year. JUNE 3 - Average home prices in China’s 100 biggest cities rose for the 12th straight month in May, a private survey showed on Monday, though the pace of increase slowed in a sign that government steps to cool the property market may be having an effect.

DATA -- Chinese property sales in May increased 28 percent from a year earlier in area terms, moderating from a rise of 40 percent in April, but still keeping a robust growth pace, according to statistics from the National Bureau of Statistics. -- Total land area bought by developers fell 13.1 percent in the first five months from a year earlier, accelerating from a drop of 8.6 percent in January-April, the NBS data showed. -- New home prices in China’s 288 major cities rose 9.7 percent in May from a year ago, the sixth straight year-on-year rise, according to the China Primary Home Price 288 index, which is published by a real estate services company E-House China. -- A total of 3.81 million, or about 29 percent, of the existing 13.21 million homes in Beijing are unoccupied, the 21st Century Business Herald said on June 17, citing a report by local police.

CHINESE PRESS JUNE 18 - Local governments of Beijing, Shenzhen, Nanjing and Hangzhou have submitted their draft proposals for taxing owners of spacious or multiple homes to the State Council, sources said. (China Securities Journal) JUNE 17 - Beijing changed pre-sale rules, demanding developers of spacious homes, commercial and office buildings finish construction of at least seven floors before applying to start sales. However, developers of small-unit homes can still pre-sell projects even if they only dig a hole on the ground. (Beijing News) JUNE 17 - Some Chinese developers are delaying the sales of newly built homes, betting on future price rises. Also, prolonged local government approval processes for projects give excuses to postpone sales. (Economic Information Daily) JUNE 14 - The capital, Beijing, has rationed approvals for sales of homes priced above 40,000 yuan per square meter, sources said. (21st Century Business Herald) JUNE 14 - Shanghai Zhangjiang High-Tech Industrial Development Zone has allowed lower-level administrative offices to approve any use for land with a plot ratio below 2.0, and to approve changes of land use between industrial, warehouse, research and development, a move that will improve land use efficiency and cut red tape. (China Business News) JUNE 14 - The average price of high-end homes in Beijing, defined as priced above 50,000 yuan per square metre, hit a 17-month high of 53,329 yuan per square metre in May due to tight supply, according to data from Yahao Real Estate Selling & Consulting Solution Agency. (China Securities Journal) JUNE 13 - Only about 50 cities have joined a unified national database for housing provident funds, versus a government target of linking 100 major cities together by the end of 2012. (China Radio)

THEY SAID -- “It’s hard to bring down home prices in Beijing and Shanghai. The problem for them is not to bring down prices but how to make the rising pace slower.” (Wang Shi, president of Vanke) -- “One important focus of property tax reform is to levy tax on existing homes, most of which will be high-end expensive homes.” (Jia Kang, head of the Finance Ministry’s think-tank.) (Reporting by Langi Chiang, Xiaoyi Shao and Jonathan Standing)

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