Fears of China homes market cooling measures
Home price growth in major mainland cities has triggered concerns that the Beijing government may take further measures to cool the market.
The 100-city home price index compiled by the China Real Estate Index System showed that the overall price growth rate last year was 0.02 per cent year-on-year.
However, a closer examination of the data by Nomura Equity Research showed that prices in the 10 major cities - which include Beijing Shanghai, Guangzhou and Shenzhen - were up 1.98 per cent since March last year.
The 100-city home price index recorded a seventh consecutive month-on-month slip last month, with the average floor price rising just 0.23 per cent to 9,715 yuan (HK$11,944) per square metre compared with a rise of 0.41 per cent for November.
"We believe that the relatively tight supply in the leading cities … essentially left some room for home price appreciation, while the momentum was also strengthened by the return of upgrading demand," Nomura said.