As a reminder, China had implemented a variety of measures in October and November, aiming at halting the latest dramatic spike in Chinese home prices, over concerns housing was becoming unaffordable for most local residents. Following the tightening measures in a number of major cities in early October, property transactions and prices data showed signs of cooling down, especially in top tier cities.
According to NBS’s separate survey on 15 major tier-1/2 cities, compared with the first half of November, 9 cities saw housing prices falling in the second half of November, 2 cities saw flat housing price and the rest 4 cities saw a positive but slower housing price growth. Nationwide real estate FAI growth also decelerated in November. In last week’s Central Economic Work Conference, the tone on property market has turned less hawkish compared with earlier in the year, which may reflect the fact that policy makers are starting to be concerned about the downside risks associated with a property market slowdown.