A heatmap of Chinese house price movements, based on a monthly survey by the National Bureau of Statistics of 70 cities, highlights the outsized influence of policy adjustments on the property market.
The map, ordered by city tier and gross domestic product, shows that the most intense month-on-month price gains in the recent market boom were concentrated in China’s largest cities (although prices also spiked in a few lower-tier, eastern cities, particularly Xiamen and Wuxi). Oversupply continued to damp price inflation in third-tier cities.
China’s hottest markets have imposed, or reimposed, curbs on buyers and sellers in recent months to cool price rises, and our graphic shows they have had a real impact.
But the FTCR China Home Price Index calls into question the sustainability of this cooling. The index rose to a six-month high in March, with sales and prices up across city tiers. Although official data continue to paint a benign picture, a recent wave of tightening measures by local authorities suggests the government still has work to do to contain the property market’s excesses.
| FT Confidential Research is an independent research service from the Financial Times, providing in-depth analysis of and statistical insight into China and Southeast Asia. Our team of researchers in these key markets combine findings from our proprietary surveys with on-the-ground research to provide predictive analysis for investors. |
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