Update | China’s new home prices rise in May, notching 10th straight month of gains
Prices of new homes in 100 biggest Chinese cities go up an average 10.34 per cent year-on-year
New home prices in mainland China rose in May, reflecting the tenth consecutive month of increases.
Second-tier cities have been top performers, and analysts expect these urban centres will continue to lead nation wide price growth in the coming months.
Prices of new homes in the 100 biggest Chinese cities rose an average 10.34 per cent year-on-year to 11,662 yuan (HK$13,757) per square metre last month, the fastest growth since August, research firm China Real Estate Index System (CREIS) showed on Wednesday.
Month-on-month, prices in May picked up 1.7 per cent, building on a 1.45 per cent gain in April. Seventy-four cities saw prices rise from the previous month, compared with 71 in February.
“Growth in first-tier cities has been stable, rose faster in second-tier cities but slowed in third-tier cities,” CREIS said in a report.
Shenzhen, China’s tech hub and the southern city adjacent to Hong Kong, remained the most expensive city to buy property, but average new home prices there expanded at a slower pace of 2 per cent in May — to 51,361 yuan per square metre. That compares with a 2.84 per cent increase in April. Prices for new homes in the city have jumped 59 per cent in the past 12 months.
Shanghai was the second priciest, with the cost of purchasing a house surging 20.7 per cent year-on-year to 40,144 yuan per square metre. New home prices in Beijing rose 13.6 per cent on average.