New home prices rise in almost all Chinese cities as lower mortgage rates, lighter restrictions spur demand
- New homes cost more in 67 out of 70 cities tracked by the government in April, a jump from 65 and 57 cities in March and February respectively
- The average cost of a new house in China increased by 0.62 per cent
New home prices rose in almost all of the 70 Chinese cities monitored by the government in April, as upbeat sentiment extended its reach.
The average cost of a new house increased by 0.62 per cent, about the same as the rise in March and higher than the 0.53 per cent gain in February, according to a Bloomberg calculations based on National Bureau of Statistics data released on Thursday morning.
Prices climbed in 67 out of the 70 cities tracked by the bureau, a jump from 65 and 57 cities in March and February respectively.
Bucking the trend were Ganzhou in Jiangxi and Shaoguan in Guangdong, where prices dipped 0.1 per cent. Guilin, a tourist city in Guangxi, saw flat home prices in April.
Home price growth snapped a four-month deceleration in March, as lower mortgage rates, an easing of home purchase restrictions and price-control regulations encouraged buyers.
“Home prices are entering an upward trajectory, enabled by an easing in mortgage policy and the unleashing of previously pent-up demand,” said Yan Yuejin, a director with E-house China R&D Institute. “If this trend continues, more cities may upgrade their curbing measures.”