Chinese home buyers are riding the wave again
Increases in China home prices continued to rise in January as the economy recovers and signs appear of relaxation in the country’s policy restrictions, according to a recent study.
A report published by the China Index Academy (CIA) which is part of Soufun Holdings, showed that the cost of a new home in 100 major cities averaged RMB 9,812 yuan per square metre last month, rising 1.2 percent from a year ago.
The increase accelerated from a 0.03 percent rise in December, when housing prices grew year-on-year for the first time in nine months.
According to a press release from the Academy, prices rose 1.0 percent from December, the eighth consecutive monthly increase.
The central government has sought to control residential property prices for the past three years, with measures including restrictions on second and third home purchases, higher minimum downpayments, and annual taxes in some cities on multiple and non-locally owned homes. However, during January, several prominent officials made remarks indicating that more property taxes would not be on the way anytime soon.
In their statement the Academy explained the rise in prices as follows: “The stabilisation and rebound in the economy, the stabilising and easing policies, the recovering market confidence and optimism among all parties helped home prices in the first month of 2013 continue the momentum at the end of 2012 to increase and at a bigger margin.”
Overall, more cities in China saw rises in new home prices last month than in December and increases were faster in first-tier cities and areas along China’s coast, the report showed.
The average new home price in Beijing stood at 25,075 yuan per square metre, rising 2.27 percent in a month and up 5.93 percent year-on-year.
In Shanghai, it was 27,655 yuan per square metre, up 2.3 percent from December and 1.72 percent higher from a year ago.
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