China’s soaring new home prices show no signs of cooling down
Prices in 100 major cities surged 2.7 per cent on average in August, the fastest monthly growth this year
China’s August new home prices recorded their strongest increase this year despite some city governments dropping hints of policy tightening to cool the market.
Average new home prices in 100 major Chinese cities rose 2.17 per cent in August to 12,270 yuan per square meter, compared to the 1.63 per cent rise in July, the fastest growth so far this year, research firm China Index Academy said on Thursday.
Year on year, prices surged 13.8 per cent in August, building on a 12.4 per cent gain in July. Sixty eight cities saw prices rise last month, compared with 66 a month earlier.
“The housing market showed no signs of waning in August,” China Index Academy said in a statement. “The strongest growth comes from cities in the Yangtze River Delta, Pearl River Delta and Bohai Rim area, the three biggest metropolitan regions.”
The housing market fever has also spread to some smaller cities with healthy economies.
Wuxi, a third-tier city between Shanghai and Nanjing, led the gains last month. Prices in the city were up 6.8 per cent in a month, outpacing its bigger neighbours.
China’s third largest city Shenzhen remains the most expensive city. Home prices climbed another 2 per cent in August to 54,478 yuan per square metre. The country’s tech hub has seen new home prices surge 43 per cent so far this year.
