Prices for average residential homes in China are on the rise again despite the government’s attempts to institute cooling measures to stabilize the market. The China Real Estate Index System (CREIS) shows an average 33% increase in home prices between June and July for properties surveyed in 100 major cities. It’s been reported that state government officials have dispatched inspection teams to ensure local governments are enforcing the measures. Despite the increases, CREIS reports that prices are still down 1.77% for the year ending in June. For more on this continue reading the following article from Property Wire.
Average residential property prices in China edged upwards in July, the second consecutive month in a row since prices began falling due to government curbing policies.
The average home price in China’s 100 major cities increased by 0.33% compared with June, coming on top of June’s month on month rise of 0.05%, the data from the China Real Estate Index System (CREIS) shows.
The rises come despite government curbs as at a local government level officials try to get around the policies. It is reported that inspection teams have been sent to some cities to check whether local governments are enforcing property curbs.
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On a year on year basis prices are still down by 1.77%, the fourth year on year fall since June last year when CREIS first began calculating the year on year change.
Analysts have different views on whether stricter curbs will be imposed. ‘The investigators mainly enquired about the sales situation of existing and new apartments and the working procedures of financial departments, and read related files and data, but didn’t give any instructions to us,’ said Chen Zhi, secretary general of the Beijing Real Estate Association.
‘In general the investigators are satisfied with the investigation results, according to my colleagues who were invited to attend an enquiry meeting in Beijing,’ said Liu Yuan, research director at Shanghai branch of Centaline China Real Estate.
Analysts said the move by the central government is intended to find out major causes of the recent recovery of the property market, especially in the big cities like Beijing and Shanghai.
Increased demand for apartments, which has accumulated for around two years since the launch of the government curbs, could be the major cause of the recent market recovery, Liu believes.
He added that the credit policy easing, aimed at stimulating the economy, has also boosted confidence of the property sector.
This article was republished with permission from Property Wire.