October 2016 Housing Price Data in Markets of Selected Chinese Property Developers

China Index Academy (a research unit of Soufun) released its monthly report of new home prices in 100 top Chinese markets (LINK).  On a national basis average selling prices rose 1.7% for the month and 18.2% from one year ago.

china-sfun-100-city-price-index

Approximately 23 Chinese cities have introduced measures to stabilize markets, primarily by limiting demand through tighter mortgages and residency requirements.  Anecdotal evidence also suggests some heavy-handed intervention to force the price indices to conform to the new cooling policy trend by delaying approval for pre-sales of high-priced homes and delaying the official recording of contracts between buyers and developers.  Officials also made high-profile crackdowns on what were described as marketing violations by developers.  It’s possible that government pressure may explain the unusual 10 day delay in release of Soufun’s monthly price data.

While the average one year home price gain is quite high, considerable differences exist between different regions and cities (see China Property: Hot or Not? for more detail).  Exposure to the good markets varies significantly among real estate developers.

The Selected Companies:  (See Benchmarking Xinyuan Real Estate after its rally for additional comments)

selected-small-mid-developers-111316

 

xin-markets-111316

cifi-markets-oct-2016

yuzhou-markets-oct-2016

kwg-markets-oct-2016

 

sce-markets-oct-2016

future-markets-oct-2016

ccre-markets-oct-2016

fantasia-markets-oct-2016

Comments:

  • comparisons are imperfect because each company provides different disclosures on a city and project level.
  • Note differences between disclosures about Area and Value – central locations in top cities are much more valuable than elsewhere.
  • Xinyuan reports results quarterly in the US while the other companies report semi-annually in Hong Kong

 

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