Wealth Effect Limited, Home Price Rise Will Slow

This opinion piece argues that the May surge in first-tier home prices will no be sustained.

The surge of home buying in May, which propelled Shenzhen prices to their biggest one month gain (perhaps the largest in history), up 6.6%, has ebbed in June. First-tier city sales fell 23% in the first week of June and only rebounded 6.4% in the second week, according to China Index Academy. Price follows volume...

The drop in the stock market will slow the wealth effect and a "slow bull" market will keep the wealth effect from exploding higher again. Instead, easy money and a good balance between supply and demand will =lead to a stable rise in first-tier city home prices.

iFeng: 财富效应减退 一线楼市下半年房价难再狂飙

In general, sales are rising in June versus last year though, with some cities up more than 200%.

Specific urban look, Qingdao, the largest volume increase in the chain, 47 percent, and Qingdao, the market volume is relatively low in May, the price of local housing enterprises active strategy use and other factors; MoM increase Wenzhou, Shenzhen and other cities are more large, the chain increased 44% and 35%, which the city and these recent gains in housing prices greater relationship.

See an increase from 20 cities in the 17 cities that is ninety percent volume rise. Among them, the biggest increase in three cities of Shenzhen, Wenzhou and Yangzhou, respectively, an increase of 287%, 276% and 224%. 20 cities, three cities in the fell, namely Changsha, Hefei and Putian, a decrease of 5%, 23% and 25%.

iFeng: 6月份楼市整体向好 成交量同比或增长六成