CASS: Chinese New Home Price Rise in 2017 Won’t Exceed 1pc
In 2017, the purchase area of real estate land continued to decline, and the land transaction price slowed down. In 2017, the land acquisition area could fall by 3.4% on the basis of a slight decrease of 3.4% in 2016, down to 4.5%. In 2017, will drop significantly from 19.8% to 12%. Transacted land prices will rise from 2016 4145 (yuan/sqm) to 4800.
From the real estate market sales situation, the growth rate in 2017 down, the price trend is relatively stable. 2017 commercial housing sales area and sales growth rate than in 2016 both down, down 10 percentage points and 20 percentage points, the average price of commercial housing is expected to increase from 2016 10% will drop to 2017, but up 1%. The stability of the real estate market will also be conducive to the smooth operation of the macroeconomy.
So flat or falling prices in 2H if this forecast ends up being accurate.