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China September home prices rise 9.1% year-on-year

Monday, 21 Oct 2013 | 10:01 PM ET
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Average new home prices in China's 70 major cities in September rose 9.1 percent from a year earlier, according to Reuters calculations based on official data published on Tuesday, marking the ninth straight month of year-on-year increases.

In month-on-month terms, prices rose 0.7 percent in September, easing from August's gains of 0.8 percent.

The National Bureau of Statistics said new home prices in Beijing rose 16 percent in September from a year earlier, compared with August's year-on-year increase of 14.9 percent.

(Read more: Asia's commercial property deals set for record year)

Blame rising home prices on China's 2-tier market
Erwin Sanft, MD, Head of China & HK Equity Research at Standard Chartered says the price rises are being seen in tier-1 and tier-2 cities where land is scare, compared to oversupply in tier-3 cities.

Shanghai prices were up 17 percent in September from a year ago, versus 15.4 percent annual growth in August.

The rises in both cities were the strongest since the data series began in 2011.

China still faces record home prices despite government measures to calm the market, in large part due to a strong view that property remains one of the best investment options.

(Read more: Property database delay frustrates China's anti-graft drive)

Reuters started its weighted China home price index in January 2011 when the NBS stopped providing nationwide data, only giving home price changes in each of 70 major cities.

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