China’s new home prices in June rise fastest in 20 months
Property price and sales growths represent a defiance of government controls to cool the market
China’s new home prices rose in June at the fastest pace in 20 months, even as the government stepped up controlling measures to fight price inflation.
Prices, excluding government-subsidised housing, rose month-on-month in a record 63 cities out of the 70 cities tracked by the authorities, surpassing the previous high of 61 cities in May, according to data released Tuesday by the National Bureau of Statistics. This is the fourth straight monthly acceleration.
New home prices fell in just four cities and remained flat in three: Beijing, Shanghai and Xiamen.
While the growth, strongest since October 2016, defied the past two years of relentless government curbs, it also sparked fears of more controls to come. Last month, local governments and policy banks have scaled down cash compensation for the country’s massive shanty town redevelopment programme, which is believed to have driven the property boom in Chinese lower-tier cities.
The Ministry of Housing and Urban-rural Development last week confirmed that it has ordered cities where prices are rising to refrain from compensating cash to residents forced to relocate. It also launched last month a six-month campaign against malpractices by developers and agents in 30 cities.