In China, November new house prices show continuous signs of stabilization driven by a pick up in big tier 1 cities. The country does not release a price index nationwide, but the prices likely rose.
The prices likely rose for the third straight month to 3.5% y/y from 2.4% previously. Tier 1 cities remain an outperformer with prices accelerating by 18.5% vs 16.2% previously.
Prices turned positive in Tier 2 cities for the first time in 15 months at 0.6 %. In Tier 3 cities, the prices contracted at a slower pace of -2.3 %.
"Despite the turnaround in property prices, we see little chance of this translating into a solid pickup in property investment. The overriding factor remains the destocking pressure in the property market arising from elevated housing inventories. As such, China's property market would continue to weigh on economic growth in the coming years", estimates Commerzbank.
