Tuesday, December 13, 2011

China Real Estate and Housing Statistics Indicate a Slowdown

China’s real estate market is slowing. So, whilst the world is focusing on the Euro Zone sovereign debt crisis, another threat to the Global Economy appears to be gaining momentum. Let’s look at statistics on China’s housing market garnered from the official National Bureau of Statistics of China.

China Housing Market Statistics

Firstly, house prices appear to be falling as indicated in this link here for November

“Comparing with the previous month, among 70 medium and large-sized cities, the sales prices of newly constructed residential buildings declined in 34 cities while that of 20 cities remained the same level.”

“Comparing with the previous month, the sales prices of second-hand residential buildings decreased in 38 cities, while that of 19 cities remained the same level. Number of cities with decreasing chain indices rose by 13 in October as compared with September. The month-on-month increases were less than 0.5 percent for the cities with increasing price.”
…and this is having an effect on the growth rate of investment in real estate assets…


…and inevitably upon the rate of growth in industrial production…



Perhaps, Jim Chanos is right with his bearish view of China’s housing and construction market?  Whether, it is going to be a hard or soft landing, it doesn’t look like the time to pile into commodities.
...and for existing homes... 

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