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Residential property prices rise in big cities
By Cherry Cao |
August 19, 2012, Sunday
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Print Edition
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THE number of Chinese cities seeing a month-on-month increase in home prices doubled in July amid improving sentiment among home buyers, according to National Bureau of Statistics data released yesterday.
Excluding government-subsidized affordable housing, prices rose in 50 of 70 cities tracked by the bureau, compared to 25 in June and six in May. On a year-on-year basis, new home prices climbed in 11 cities, unchanged from June. "Robust sales of mid- to high-end residential properties registered across the country, particularly in large cities since May, continued to back up month-over-month price gains," said Zhang Hongwei, an analyst with Tospur, a Shanghai-based property research organization. "A growing number of real estate developers trimmed or canceled discounts and this also attributed to the growth."
The average cost of new homes in the country's 10 largest cities rose 0.27 percent from a month earlier to 15,470 yuan (US$2,436) per square meter in July, according to earlier data released by China Index Academy.
In Shanghai, Beijing and Guangzhou, where home purchase restrictions have been vigorously enforced, new home prices climbed by between 0.1 percent and 0.3 percent from June. Prices in Shenzhen remained flat, the bureau said yesterday.
"It?s still a little early to determine whether this momentum will be sustained," Mark Budden, China Area Leader at EC Harris, a leading global built asset consultancy, told Xinhua news agency.
With a number of tightening measures still in place and property taxes increasing in certain cities, robust growth in home prices is unlikely in the short-term, Budden was cited as saying.
The existing home market, meanwhile, showed similar gains. Thirty-eight cities saw monthly price growth in July with a maximum gain of 2.2 percent. That compared to 31 cities in June with a maximum gain of 1.1, according to the bureau.
New home purchases in China by both value and volume fell by a narrower margin in the first seven months of this year, indicating a recovery in momentum among home buyers, the statistics bureau said earlier this month. New home sales dipped 1.1 percent on an annual basis to 2.38 trillion yuan across the country between January and July. By volume, they totaled 430.78 million square meters, down 7.5 percent from same period a year earlier.
China has tightened curbs on the property sector in an effort to bring home prices back to a reasonable level. The government has restricted home purchases in several cities while requiring higher down payments.
Excluding government-subsidized affordable housing, prices rose in 50 of 70 cities tracked by the bureau, compared to 25 in June and six in May. On a year-on-year basis, new home prices climbed in 11 cities, unchanged from June. "Robust sales of mid- to high-end residential properties registered across the country, particularly in large cities since May, continued to back up month-over-month price gains," said Zhang Hongwei, an analyst with Tospur, a Shanghai-based property research organization. "A growing number of real estate developers trimmed or canceled discounts and this also attributed to the growth."
The average cost of new homes in the country's 10 largest cities rose 0.27 percent from a month earlier to 15,470 yuan (US$2,436) per square meter in July, according to earlier data released by China Index Academy.
In Shanghai, Beijing and Guangzhou, where home purchase restrictions have been vigorously enforced, new home prices climbed by between 0.1 percent and 0.3 percent from June. Prices in Shenzhen remained flat, the bureau said yesterday.
"It?s still a little early to determine whether this momentum will be sustained," Mark Budden, China Area Leader at EC Harris, a leading global built asset consultancy, told Xinhua news agency.
With a number of tightening measures still in place and property taxes increasing in certain cities, robust growth in home prices is unlikely in the short-term, Budden was cited as saying.
The existing home market, meanwhile, showed similar gains. Thirty-eight cities saw monthly price growth in July with a maximum gain of 2.2 percent. That compared to 31 cities in June with a maximum gain of 1.1, according to the bureau.
New home purchases in China by both value and volume fell by a narrower margin in the first seven months of this year, indicating a recovery in momentum among home buyers, the statistics bureau said earlier this month. New home sales dipped 1.1 percent on an annual basis to 2.38 trillion yuan across the country between January and July. By volume, they totaled 430.78 million square meters, down 7.5 percent from same period a year earlier.
China has tightened curbs on the property sector in an effort to bring home prices back to a reasonable level. The government has restricted home purchases in several cities while requiring higher down payments.
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