Price Follows Volume: Home Prices Start to Decline

Prices are coming down in some cities according to data from some real estate agencies.
Several large intermediary agencies released data show that Beijing, Shenzhen and other cities in this round of regulation and control of the intensity of the city's trading volume was significantly down, while prices have begun to fall, volume and price Qi. Larger decline in the city also includes Xiamen, Suzhou, Wenzhou and other places.
In the continuous regulation, the other first-tier cities in Shanghai is no exception. According to the Shanghai Centaline Property data show that in December Shanghai new commercial housing turnover of only 649,000 square meters, increased 7.6% mtm, down 65.6% yoy, this value is the lowest over the same period in 5 years.
The same article also appeared with a headline about tightening credit in Beijing:
According to "Securities Daily" reported that many commercial banks in Beijing from the beginning of New Year's Day this year, began to tighten the first mortgage interest rate discount, last year's 88%, 85% or even some banks 8 fold, generally increased to more than 90%. From the past history of real estate, in the credit tightening when housing prices will be significantly inhibited.
Chinese give a discount as the new price, not the amount taken off, so that says the discount on mortgages rates has gone from 15-20%, down to 12%, to now 10% or less.

We'll see in a couple of weeks whether this shows up in NBS statistics.
iFeng: 量价齐跌!部分城市新房价格跌回半年前
iFeng: 北京新房均价回调至3.82万元/平方米 信贷收紧

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