RHB | China | Home Prices Rose at Slower Rate in May, 19 June 2014

Economic Research	19 June 2014
China
Economic Highlights
Home Prices Rose at Slower Rate in May China’s average home prices continued to trend lower in May, pointing to a further cooling of its property sector. New home prices (exclude affordable homes) rose by an average of 5.6% yoy in May in 70 major cities monitored by the government, slowing from a 6.8% rise in Apr based on our calculations (Figure 1). This marked the fifth successive month of year-on-year moderation for new home prices, and represented the slowest increase in thirteen months. Home prices in first-tier cities continued to advance at a slower pace, with the annual gains falling below 10% in all cities for the first time since Apr 2013 except Shanghai (Figure 2). Shanghai continued to lead the price increases at 11.3% yoy in May, followed by Xiamen (+11.0%), Beijing (+9.7%), Guangzhou (+9.6%) and Shenzhen (+8.9%). Wenzhou remained the only city to post a price decline in May, with its prices down for a 33rd straight month at -4.8% yoy after having fallen 4.4% in Apr. Economist:  Liang Siew Huay  | +65 6232 3851
To access our recent reports please click on the links below: 13 June 2014 : Economy Showed Signs of Stabilising 10 June 2014 : Inflation Picked Up to 2.5% yoy in May 10 June 2014 : Second Targeted RRR Cut in Two Months 04 June 2014 : Non-manufacturing PMI Rose to Six-Month High 02 June 2014 : Official Manufacturing PMI Rose for a Third Straight Month 19 May 2014 : Home Price Growth Continued to Moderate in April