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China November new home price growth cools, private survey shows

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Chinese new home prices growth eased slightly in November, weighed by tighter market curbs in larger cities and increased demand weakness in smaller towns, a private survey showed.

[SHANGHAI] Chinese new home prices growth eased slightly in November, weighed by tighter market curbs in larger cities and increased demand weakness in smaller towns, a private survey showed.

New home prices in 100 cities rose 0.32 per cent in November from a month earlier versus a 0.4 per cent gain in October, according to data from China Index Academy (CIA), among China's biggest independent real estate research firms.

Fewer cities reported monthly gains, with the number falling to 71 from 73 in October, and 28 cities saw lower home prices compared with 26 in the preceding month, the CIA data published on Tuesday showed.

City clusters in the southern Pearl River Delta and eastern Yangtze River Delta contributed most of the market's strength in November, the CIA said, with Dongguan, Hangzhou and Jinhua leading price gains.

Liaocheng and Dezhou cities in eastern Shandong province saw the biggest monthly price drops.

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"The slower home prices growth showed the effect of policy tightening in some cities has kicked in," said Cao Jingjing, Research Director with CIA.

"Meanwhile, some tier-3 and tier-4 cities with no economic and population support saw price drops, due to a slump in demand after an initial spurt of buying." On an annual basis, new home prices rose 3.63 per cent in November, versus October's 3.52 per cent gain.

Land sales by volume fell 27 per cent in November from October, while average transaction price per square metre rose 18 per cent, led by higher land prices in tier-1 cities, separate CIA data showed.

REUTERS

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