China home prices up for 11th straight month

BEIJING — Average home prices in China’s 100 biggest cities rose in April from March, the 11th straight month-on-month rise, a private survey showed yesterday, raising the risk of further tightening steps after recent government measures to crack down on speculation.

Average home prices last month climbed 1 per cent from March to 10,098 yuan (S$2,002) per square metre, said China Real Estate Index System (CREIS), a consultancy tied to China’s largest online property firm, Soufun Holdings.

The pace, however, moderated from March’s month-on-month gain of 1.1 per cent, it said.

The survey also showed home prices rose 5.3 per cent last month from a year ago, up from March’s 3.9 per cent annual rise and marking the fifth consecutive year-on-year increase.

Relentlessly rising home prices have sparked concerns that housing costs could start to spiral out of control and forced local governments into a fresh round of measures in late March — including more stringent credit checks and a capital gains tax of 20 per cent — in heed of central government orders.

Average home prices in China’s top 10 cities, including Beijing and Shanghai, rose 1.3 per cent last month from March and were up 7.9 per cent from a year ago, CREIS said.

“Looking forward, there are still risks of further tightening policies in cities where home prices are rising too fast,” it added.

Source : Today – 2013 May 3

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