China home prices rise in more cities in March
More major cities across China saw month-on-month home price increases in March, underscoring the urgency of upgraded curbs to help dampen overly-rapid asset inflation.
The National Bureau of Statistics on Tuesday said new home prices in March rose on month in nine of the 15 first and second-tier cities that it closely monitors. In February, only three cities, Guangzhou, Tianjin, Shanghai rose from January.
The accelerated growth follows a previous round of property curbs unveiled since October and highlights the need for additional measures to help rein in frenzied speculation.
Since late March, as many as 50 local authorities have rolled out administrative measures to cool the market. These include an increase in down payment requirements, controls on selling prices, and restrictions on purchases by non-locals and second-home buyers.
Experts said because of the lag effect, the latest round of curbs will take effect in the following months.
New home prices in the southern metropolis of Guangzhou jumped 2.5 per cent in March on month, accelerating from a 0.9 per cent rise in February to rank as the fastest growing among 15 cities, according to the National Bureau of Statistics.
Guangzhou in late March raised administrative measures designed to cool the housing market three times. These included a broadening of the areas where limits on home purchases apply, an increase in down payment requirements and a requirement that prohibits homes from being resold within two years of purchase.
Up to 10 cities have imposed rules that require buyers of new homes to hold the properties for at least two years before resale, including Xiamen, Fuzhou, Qingdao and Dongguan. New home prices in Xiamen rose 1.9 per cent in March, becoming the second-hottest property market after Guangzhou.
Prices rose 0.4 per cent in Beijing and declined 0.1 per cent in Shanghai.
The year-on-year growth of residential floor space for sale in March cooled to 11.1 per cent, down from 23.7 per cent growth in the first two months, while in value terms the growth slowed to 18.2 per cent, down from 22.7 per cent in the January to February period, according to calculations by the Post based on NBS data.