China home prices rise strongly
Guangzhou leads charge with 20 per cent growth last month, sparking fears of tougher measures to cool housing market
New home prices on the mainland registered the largest gain in almost three years last month, sparking concern the country's leaders may introduce stricter measures to check housing inflation at next month's key economic reform meeting.
Led by major urban centres, average new home prices rose in 69 of 70 cities from a year ago, according to the National Bureau of Statistics.
Guangzhou prices recorded year-on-year growth of 20 per cent, followed by 19.7 per cent in Shenzhen, 17 per cent in Shanghai and 16 per cent in Beijing. Average new home prices edged up 9.1 per cent, according to Reuters calculations. That was the biggest increase since the statistics bureau changed the way it calculated home prices in January 2011.
"Policymakers are likely to extend the trial property tax, particularly in cities with strong price growth," said Alan Chiang Sheung-lai, the head of residential property at DTZ Greater China.
Chiang said Shenzhen could be the next city to roll out property taxes.
Policymakers are likely to extend the property tax, especially in [certain cities]
Developers in most cities enjoyed brisk sales and higher prices during the National Day "golden week" holiday, a traditional industry peak season.