China property prices gain first time in fourteen months - corrected version

Another sign of stabilization from China in today's housing market report. Price across 70 cities surveyed rose for first time in 14 months, on yearly basis. As per Reuters' calculation, prices across 70 cities rose by 0.1% from a year ago, while month prices were up 0.2%, sixth rise at a stretch.

• At the peak of price deflation, prices were down -6.1% in March and April. In the meantime, Chinese authorities and the central bank have taken several measures to prevent the slide.
• People's Bank of China (PBoC) has cut rates six times in last 12 months. Down payment for first time buyers was cut from 30% to 25%, while down payment ratio for government sponsored housing provident fund was cut from 30% to 20%, for second home purchase.
• Investors reallocating funds from equity (due to turmoil) to real estate has also helped the recovery.

 If the trend continues, prices are likely to rise further in coming months.

Home prices in Shanghai rose by 10.9% on yearly basis compared to 8.3% in September, while rose 6.5% in Beijing and 39.9% in Shenzhen.

However, all is not still rosy, major upside push in prices came from Tier-1 cities due to supply overhand in lower tier cities. In October prices rose only in 27 cities, compared to 39 cities in September.

However, China is likely to keep pursuing policies to support growth in prices, which is all-in-all beneficial for current uptrend.