China new home prices cool further in November as government’s real estate curbs weigh on

New home prices in China cooled down further during the month of November, following the government’s imposition of real estate regulations, which weighed on the housing market prices. The country’s overheated market witnessed some calm on fall in speculative demand as tighter restrictions impose higher risks of home purchases.

China’s new home prices rose 0.6 percent month-on-month in the nation's 70 major cities, slowing from October's 1.1 percent, data released by the National Bureau of Statistics (NBS) showed Monday.

New-home prices rose in 55 of 70 cities in November from a month earlier, compared with 62 cities in October. Prices of new homes increased in 64 of 70 cities in November from a year earlier, compared with 65 cities in October.

Tier-I cities like z Shenzhen, Shanghai and Beijing saw prices rise 27.9, 29 and 26.4 percent respectively, compared to a year earlier period. Home prices in Shenzhen fell for a second month by 0.3 percent from October, while Beijing and Shanghai prices were unchanged on a monthly basis, compared to a 0.5 percent rise for both cities last month.

However, compared to a year ago period, housing prices rose 12.6 percent, up from 12.3 percent in October, the data showed. The property sector contributed 8 percent to China's GDP growth in the first nine months of 2016 and investment in this sector is expected to grow 5 percent in 2017, Reuters reported, citing a forecast from government think tank China Academy of Social Sciences (CASS).

Meanwhile, USD/CNY traded flat at 6.96, forming a bearish doji pattern.