The CER China National Housing Index rose 2.2% to 108.05 in October from a month earlier as demand for new housing in China continued to push up prices. The strong increase reflected greater investor confidence in the economy after a recovery that started in early Q3 and that buyers for homes to live in were letting their pent up demand into the market after sitting on the sidelines for much of the year in expectations that prices would come down. They haven’t.
The Tier 1 City Outer sub-index was the best performing, at 121.15. Properties in mid-outer parts of China’s biggest cities were the most popular with buyers. The average price of apartment in those areas in Shanghai and Beijing hit RMB31,062 per square meter in October, up from RMB25,638.5 in November 2012, the base date for the index. The Non-Tier 1 City sub-index hit 108.11 while the Tier 1 City Core sub-index was just 101.32 as properties in prime locations in China’s two biggest cities saw much weaker price growth.
The CER China National Housing Index is compiled by China Economic Review and calculated according to data on the square meter price of new homes in key cities provided by the CRIC Research Center. Our three sub-indices are devised by our panel of real estate experts to reflect the significant variations in China’s housing market and provide readers with a broader view on real estate activity and the implications for the Chinese economy.