Chinese house prices out today. The monthly gain was 0.6% and annual up to 4.9%:
Gains are still largely lower-tier cities:
But the gains are broadening out:
What is so interesting about this is that it has the appearance of a sustainable real estate regime that no longer misallocates capital and aids in its rebalancing towards household demand and services.
If prices can rise at moderate rates while regulatory authorities prevent follow-through construction volumes then it has finally got a sustainable approach to structural rebalancing.
It will also mean that it can persist with supply-side tightening on construction for longer because is supported by consumption so the news is not so good for Australian iron ore.