MB readers have been enjoying the knowledge that the Chinese property recovery, such as it is, is weak and bifurcated, as well as a largely useful economic figment that will not boost economic activity and commodity prices mush. At FTAlphaville today the secret is out:
From Goldman:
On a sequential basis after seasonal adjustment, housing prices in the primary market increased 0.4% mom (weighted by population) in August, similar to the growth rate in July. Out of 70 cities monitored by China’s National Bureau of Statistics (NBS), only 27 saw housing prices fall from the previous month (vs. 32 out of 70 cities in July, on a seasonally adjusted basis). Price increase in top-tier cities continued to outpace lower-tier cities, but price growth has decelerated (while still very positive) in tier-1 cities: August price growth at 1.9% mom sa, vs. 2.1% mom sa in July. The largest month-over-month price fall came from Jining (based on sa mom change), a lower-tier city in the Shandong province.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
