Beijing — China’s house prices rose for a 29th straight month in February, but the pace of growth slows because of the government purchasing restriction. On a yearly basis, home prices of China’s the ‘tier one’ including Beijing, Shanghai and Guangzhou — keep falling, according to the National Bureau of Statistics. Shenzhen’s home price growth had the biggest year-on-year decline because of the high cost of building construction, mainly the land price factor.
The property curbs also reflects on second-hand home prices, China’s capital city fall most for 10 consecutive months by 4.6 percent from a year earlier. Second-hand home transactions accounted for almost five times the new-home sales in 2017, according to the Beijing municipal statistics. In Guilin, China’s most famous southern tourist destination, had the most stable housing prices, previously owned home sold as the almost same level of 2015.
Concerning the used home market, the price is still expected to decline in 2018 because of the lack of potential buyers who can meet high loan and more down payment, said Hu Jinghui, vice president of 5i5j – a major housing agency in Beijing at China Daily. China’s housing market has entered into a sideways consolidation period after it experienced a fast-growing cycle, with high prices and high sales volume, said Shui Pi, editor-in-chief of China Times.
Beside this, a nationwide registry system is expected to be effective in 2018. Chinese Finance Minister Xiao Jie lately indicated that property tax legislation will be take place in March, 2019, followed by nationwide taxation, the Global Times reported in early of March, 2018. The real estate sector accounts for one-third of China’s GDP, according to Fortune.