New home prices in China's four major cities in October rise at fastest rate since January 2011, raising concerns about potential property bubble unless further real estate curbs are put in place
November 18, 2013
(Dion Global Solutions Limited)
– New home prices in China's four major cities rose at the fastest pace since January 2011 in October 2013, raising concerns over a property bubble in the world's second biggest economy in the absence of further real estate curbs.
In the southern city of Guangzhou, new home prices rose 21 per cent in October 2013 over the same month a year ago while that in Shenzhen, Shanghai and Beijing, prices climbed 20 per cent, 18 per cent and 16 per cent, respectively.
New home prices rose in 69 out of the 70 Chinese cities tracked by the government survey.
Property demand has surged in the last few months with house sales up 33 per cent in the January-October period as the Chinese government did not enforce further housing curbs amid fears over deepening the slowdown in Asia's biggest economy.
While authorities in Shenzhen and Shanghai in November raised the minimum down payments for second homes to 70 per cent, the absence of nationwide housing curbs is making it difficult for China to stem surging price gains.
Existing home prices rose 19 per cent in Beijing in October 2013 from a year ago, while that in Shenzhen and in Shanghai prices increased 14 per cent and 13 per cent, respectively. Published by HT Syndication with permission from Dion Global Solutions Limited. For any query with respect to this article or any other content requirement, please contact Editor at firstname.lastname@example.org
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