China’s property market saw broad-based recovery last month, with more cities reporting growth in new home prices.
In major cities such as Shanghai and Shenzhen, home prices grew at a slower pace after the recently announced cooling measures. But cities close to tier-one cities and an increasing number of tier -2 and tier-3 cities saw significant rise, according to research firm China Real Estate Index System’s (CREIS) tracking of 100 cities.
Lower-tier cities like Huizhou in southern province of Guangdong and Kunshan, a city near Shanghai, grew the fastest, reporting a month-on-month increase of 6.3 per cent and 6.06 per cent. New home prices in Suzhou rose 5.49 per cent and in Nanjing, 4.73 per cent.
Analysts said local governments will soon introduce more cooling measures for the cities where the property market is heating up. Some analysts, however, believe a full-fledged recovery is still some distance off as demand in some small inland cities remain weak.
The average price of new homes in 100 cities edged up 1.45 per cent to 11,467 yuan per square metre last month, slowing from the 1.9 per cent growth in March, according to CREIS. The 1.9 per cent growth in March was the highest monthly pace since the index was launched in June 2010.
Among the 100 cities, 71 saw growth in new homes prices, up from 60 in March. Prices fell in 25, with that in four cities remaining unchanged.