More Chinese cities report home price gains in April
Real estate prices began to cool in some cities, notably Shenzhen, where second-hand home prices fell 0.4 per cent for the month
New home prices rose in more mainland Chinese cities in April, with gains in smaller urban centres outpacing first-tier cities such as Beijing and Shanghai, according to official data released on Wednesday.
Analysts are warning of a correction in the cities where prices have jumped in the past year as the central government steps up efforts to cool down the real estate sector.
Prices of new homes last month rose in 65 of the 70 cities tracked by the National Bureau of Statistics, up from 62 in March. Prices fell in five cities, the bureau said.
The pace of price appreciation in April cooled in Beijing, Shanghai, Shenzhen and Guangzhou for both new and previously owned homes.
In Shenzhen, new home prices rose 2.3 per cent in April, compared with a 3.7 per cent gain in March, while second-hand house prices in the city contracted 0.4 per cent. Beijing’s new home prices rose 3 per cent in April, against 3.3 per cent the previous month. In Shanghai, prices of new homes were up 3.6 per cent for the month, compared to 4.3 per cent in March.
Hefei, a mid-sized city in central China, topped the league table, with prices jumping 5.8 per cent for the month. In the past 12 months, new home prices in the city have risen 17.6 per cent. Xiamen, a southern port city, came in at No 2, with prices increasing 5.3 per cent in April from March.