Recently, the Chinese Academy of Social Sciences, Institute of Financial and Economic Strategy, Chinese Academy of Social Sciences, Center for Urban and Competitiveness Research project team released the November 2017 "Monthly Analysis Report on Housing Market Development" (hereinafter referred to as "the report"). The Report predicts that the stoppage or short-term adjustment of housing prices will gradually expand from first- and second-tier cities to third- and fourth-tier cities, but there is no possibility of a major fall in most cities.
The report shows that the monitoring of the Big Data House Price Index has found that house prices in the sample cities are retreating across the board, and more and more cities are starting to enter a period of adjustment.
From the ring comparison, the property market in hot cities basically quenched, and the rate of increase in house prices in most of the sample cities tended to be close to zero. The big data house price index (ring comparison) shows that in October 2017, the sample city house prices rose by an average of 0.2% on a ring comparison, of which most of the city house prices rose or fell within the range of -1%~1% on a ring comparison. Among the sample cities, only four cities, Chengdu, Hangzhou, Yantai and Jinan, saw increases higher than 1%. Nine other cities, namely Langfang, Beijing, Shanghai, Huizhou, Chongqing, Suzhou, Zhengzhou, Tianjin and Guangzhou, recorded year-on-year declines in house prices. Other than that, home prices in the other cities in the sample rose by less than 1 percent year-on-year.
Beijing, an important weathervane for the property market, saw a 1.16 percent drop in home prices in October, and has been down for six months in a row. Only in Chengdu did prices rise by 6.69% in October, a significantly higher rate than in the other sample cities. In Hangzhou, the 2nd largest city in the sample, home prices only rose 1.78% in October. As a typical city of real estate investment and speculation, Langfang, in October, fell 5.74% from the previous month, ranking first in the sample of cities in the decline.