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  • Jul 13, 2014
  • Updated: 10:53am
BusinessEconomy

Home prices accelerate in Chinese cities

PUBLISHED : Friday, 01 November, 2013, 1:17pm
UPDATED : Friday, 01 November, 2013, 1:17pm

Chinese home prices rose faster in October than the month before on strong demand and the launch of new housing projects, an independent survey showed Friday.

Average prices of new homes in 100 major Chinese cities jumped 10.69 per cent year on year to 10,685 yuan (HK$13,504) per square metre, said the China Index Academy, which compiled the survey.

That was higher than the 9.48 per cent rise in September and 8.61 per cent increase in August, said the academy, the research unit of real estate website operator Soufun.

“On the demand side, there was unabated enthusiasm from home buyers,” the academy said, citing long holidays and the launch of high-end projects.

On a month-on-month basis, new home prices were up 1.24 per cent in October from September, marking the 17th consecutive month of growth, it said.

On the demand side, there was unabated enthusiasm from home buyers
China Index Academy

High property prices are a major source of discontent among citizens, and authorities have sought to control their rise while at the same time pledging to provide low-cost housing.

President Xi Jinping called this week for greater efforts to increase home supply and place more importance on public housing projects, state media reported.

Authorities will discuss new “mechanisms” for the real estate market, including possible expansion of a property tax, at a key Communist Party meeting later this month, media reports have said.

Previous market control measures included restrictions on purchases of second and third homes, higher minimum down payments, and taxes in some cities on multiple and non-locally owned homes.

“The market pattern of fluctuating demand and rising home prices will likely improve while the situation of excessive home price increases will be restrained,” the academy said.

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