(Yicai Global) Feb. 19 -- Second-hand house prices across China's 70 large and medium-sized cities exhibited a compound annual growth rate of 5.5 percent between 2015 and 2018, lagging behind the expansion of the country's gross domestic product, according to a new report.
House prices across urban areas increased 23.7 percent overall between January 2015 and December last year, according to the report from Yiju Real Estate Research Institute.
Prices in China's four first-tier cities have expanded 61 percent over the period, far outstripping the country's national growth. Shenzhen led the way with an 80 percent swell, followed by Beijing and Guangzhou at close to 60 percent and Shanghai trailed with 45 percent, China News Service reported.
Apart from first-tier cities, the report also analyzed four other categories, namely, strong second-tier cities, non-strong second-tier cities, third-tier cities in urban agglomerations, and third-tier cities outside of urban agglomerations.
The growth rate of home prices in strong second-tier cities led with 35 percent, while those of non-strong second-tier cities and third-tier cities in urban agglomerations are in line with the national average increase. House prices in third-tier cities outside of urban agglomerations grew at a below-average pace, especially those in the northeast, central and western regions.
First-tier cities embarked on stronger regulation of the housing market in the second half of 2017, and prices are expected to stabilize and recover in the future. Second- and third-tier cities are ushering in a new phase of regulation with second-hand home prices in some cities in eastern and southern China beginning to fall.
Regulation in third-tier cities is expected to last for a long time because of the weak economy, said Wang Ruochen, a researcher at Yiju Real Estate Research Institute.
Editor: William Clegg