China Home Price Rally Shifts to Second Tier in April, Prices Up 1 pc Nationally

New home prices rose 1 percent in April and the housing rally has moved beyond first-tier cities. Those cities remain among the fastest gainers, but the top tier plus Xiamen only accounted for about 20 percent of the national price rise, down from 30 percent last month and 50 percent earlier this year. Y/Y prices are up 4.1 percent, with the top tier and Xiamen responsible for 50 percent of that number.

Existing home prices rose a smaller 0.7 percent and only 51 cities reported gains. Y/Y prices are up4.3 percent, with the top tier and Xiamen accounting for more than 50 percent of that advance.

Hefei was the winner in April: new home prices rose 5.7 percent and existing homes increased 6.8 percent.

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As for the current month, a slowdown in first-tier sales should further slow price increases in May, assuming no pickup in demand.

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