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1036 - Vanke Overseas Investment Holding Co News Story

HK$2.65 0.1  3.1%

Last Trade - 8:04am

Sector
Financials
Size
Small Cap
Market Cap £98.7m
Enterprise Value £126.5m
Revenue £24.8m
Position in Universe 2825th / 5988

UPDATE 1-China's new home prices edge up in March as more cities report gains

(Adds details, background, analyst quote) * March new home prices +0.4 pct m/m vs +0.2 pct in Feb * Yearly growth +4.9 pct while Feb was +5.2 pct * Number of cities reporting price gains rose * Top tier cities prices rebounded * Smaller cities extended higher gains BEIJING, April 18 (Reuters) - China's new home prices market remained firm in March, extending a 35-month rising streak, as the government worked to support demand from first-time buyers and upgraders and despite persistent curbs to dampen speculative demand. Average new home prices in China's 70 major cities rose 0.4 percent in March from the previous month, up from an 0.2 percent growth in February, Reuters calculated from National Bureau of Statistics (NBS) data published on Wednesday. On a yearly basis, new home prices increased 4.9 percent in March, slowing from February's 5.2 percent increase, partly due to a high base effect as policymakers rushed to impose a flurry of fresh tightening measures in late March last year. The majority of the 70 cities surveyed by the NBS still reported monthly price increases for new homes. Fifty-five cities reported higher prices in March, up from February's 44. "Today's data shows there is still significant upwards price pressure," Yan Yujin, an analyst with Shanghai-based E-house China R&D Institute said. "It it possible some cities will release more tightening measures." China's property market has soared since 2016, giving a major boost to the economy but also raising concerns about bubbles. Prices have slowly levelled off and even softened in tier-1 cities following government measures to rein in speculative investment. While more than 100 cities have introduced some measures to cool home prices, analysts still expect moderate price appreciation in the country's vast number of smaller centres where regulations are less restrictive. Price gains reported by smaller provincial capitals expanded by 0.3 percentage points in March from that in February. Meanwhile, prices in top-tier cities also increased 0.1 percent in March from February, reversing a fall in the previous month, the NBS said in a statement along with the data. New home prices on average for the country are expected to rise faster than previously thought in 2018 on falling inventories and still robust demand from tier-3 and tier-4 cities, according to a Reuters poll last month. urn:newsml:reuters.com:*:nL3N1RC2UB China posted its fastest property investment growth in three years in the first quarter, driven by a surge in land values and as developers grew more confident about the policy outlook, even as sales slowed and existing curbs hit transactions. urn:newsml:reuters.com:*:nL3N1RS03D New household loans, mainly mortgages, totalled 580 billion yuan in March. They made up 52 percent of total new yuan loans, versus 33 percent in February. urn:newsml:reuters.com:*:nL3N1RQ3P6 Chinese property developers are also reporting firm results. Last week, China's second-largest property developer Vanke 1036.HK reported total contract sales of 154.26 billion yuan in the first quarter, up from 150.3 billion made in the same period last year. urn:newsml:reuters.com:*:nL3N1HD32B Higher borrowing costs pose a risk for the sector as they will potentially dampen demand, although mortgage rates remain low compared with historic levels, analysts say. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ China's property market http://tmsnrt.rs/2BSc9Bx ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Yawen Chen and Ryan Woo; Additional Reporting by Zhang Min; Editing by Sam Holmes) ((yawen.chen@thomsonreuters.com; +86 10 6627 1207; Reuters Messaging: yawen.chen.thomsonreuters.com@reuters.net))
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