The Chinese government’s campaign against residential property speculation is apparently having an impact on prices. The price of new homes rose by 0.14 percent in September, slower than in a year and a half, as the independent research institute China Index Academy announced on Friday for its study of 100 cities. However, contrary to the trend, inflation accelerated slightly in metropolises such as Beijing and Shanghai.
The authorities recently stepped up their campaign against speculators. In the cities of Shenyang and Haikou, for example, real estate developers and brokers have been urged to stop selling apartments in school districts. Many Chinese have bought real estate near particularly good schools in order to secure a place for their children there.
“We assume that the current restrictions on the real estate market will not be relaxed in the near future,” wrote the analysts of the financial house Nomura. “Beijing attaches national strategic importance to the containment of real estate bubbles and intervenes directly in lending for the real estate sector.”
Sentiment is currently heightened by concerns over a possible default by real estate giant Evergrande. The central bank pledged to protect the real estate-dependent consumers and pumped more money into the banking system.