GO
Loading...

China property inflation quickens in October - surveys

Friday, 1 Nov 2013 | 3:30 AM ET

BEIJING, Nov 1 (Reuters) - China's property inflation quickened in October, two private surveys showed, a development that could reignite fears of a real estate bubble in the world's second largest economy.

Prices of new homes in 288 major cities rose 0.8 percent in October from the previous month, accelerating from September's 0.4 percent increase, a poll released on Friday by E-House China , a real estate services firm.

From a year ago, house prices jumped 10.5 percent in October, quickening slightly from September's 10.4 percent annual gains, E-House said.

Home prices hit record highs in many cities in September, official data previously showed, putting them well beyond the reach of ordinary people despite a nearly four-year long government effort to curb price rises.

The signs of overheating in the property market have led some analysts to speculate the government may unveil measures during or after a key Communist Party meeting this month.

The central government did not introduce any nationwide measures since the new leadership formally took office in March, but local authorities in some areas have taken steps to try to cool prices.

Analysts see the way Premier Li Keqiang has not taken any tightening measures as reflecting a desire let market forces, rather than administrative actions, control the property market.

PRESIDENT'S PLEDGE

However, President Xi Jinping pledged this week to increase the supply of land for homes and spend more to projects providing affordable housing.

A survey by China Real Estate Index System (CREIS), also released on Friday, showed average prices in the 100 biggest cites rose for the 17th straight month in October. Prices were up 1.2 percent on a monthly basis, compared with 1.1 percent in September, it showed.

"Some developers have launched more middle and high-end home projects in October to pursue high profit margins, pushing up home prices," said a statement from CREIS, a consultancy linked to China's largest online property information firm, Soufun Holdings.

Average home prices in the 100 biggest cities rose 11 percent in October from a year ago, up from September's 9.5 percent annual gain, according to CREIS.

In the 10 most expensive cities, including Beijing and Shanghai, average home prices rose 2 percent last month and 16 percent on the year, CREIS added.

China is due to publish official home price data for 70 major cities for October on Nov. 18. In September, new home prices rose the most in nearly three years.

  Price   Change %Change
EJ
---