New home prices in China showed strong growth in January, after the central government’s new initiatives to ease the glut in smaller cities.
Prices of new homes in 100 biggest cities rose an average of 4.37 per cent year on year to 11,026 yuan (HK$13,014) per square metre in January, the sixth straight month of gains and the fastest growth since August, property research house China Real Estate Index System (CREIS) said.
On a month-on-month basis, prices in January were up 0.42 per cent, but slower than the 0.74 per cent gain seen in December.
“Local governments have taken a number of supportive measures to unleash demand from new immigrants such as improving the Housing Provident Fund System and asking developers to upgrade construction quality,” CREIS said.
READ MORE: Home sales in top 10 Chinese cities jumped this much in December
Sixty cities saw new home prices rise from the previous month, compared with 51 cities in December. Gainers were led by cities in Guangdong province, where Huizhou jumped 5.45 per cent and Shenzhen was up 5.24 per cent.