After recording blistering growth in housing prices over the last few months, exceptional moves undertaken by the People’s Bank of China and the Central Government to cool momentum are showing signs of success. According to figures compiled by the National Bureau of Statistics, Chinese residential real estate prices have now risen for 16-straight months, rising 12.20% year over year through the end of January.
After printing at a 12.60% annualized pace of growth back in November, the latest figures indicate that property curbs are working after prices only rose by 0.20% month over month. Although prices rose in the majority of cities measured, increased restrictions implemented by local governments are clearly having an impact and will likely lead to a further deceleration in price gains. In the meantime, the Yuan continues to give back ground versus the US dollar, with USDCNH touching a one-week high on Tuesday.