Sat, Jan 05, 2013 - Page 15 News List

China property prices rise, but large rebound unlikely

AFP, BEIJING

China’s home prices recorded their first year-on-year increase in nine months last month, an independent survey showed yesterday, but it said a huge rebound nationally was unlikely.

The cost of a new home in 100 major cities averaged 9,715 yuan (US$1,560) per square meter last month, up a marginal 0.03 percent from December 2011, the China Index Academy (CIA) said.

Prices rose 0.23 percent from November, the seventh consecutive monthly rise, it said in a statement.

Property costs are a key social issue in China, where millions of would-be buyers have been priced out of the market, fueling resentment.

The central government has sought to control residential property prices for the past two 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.

The moves cooled the once red-hot market, but demand remains pent-up and government monetary policy has eased in recent months.

“Looking into 2013, the property sector is expected to continue the trend in 2012 to stabilize and recover under the conditions that the economy stabilizes and recovers, and the strength of current policies remains unchanged,” the CIA said.

“But a massive rebound across the board nationwide is rather unlikely as the destocking of new projects whose construction started in the past two years is far from ending,” it added.

Most property developers put off launching new projects and kept prices stable last month after reaching their full-year sales target, it said, adding that the central government’s repetition of its determination to maintain curbs on the industry also prevented a sharp rise.

The average new home price in Beijing stood at 24,518 yuan per square meter, up 0.53 percent in a month and up 3.31 percent year-on-year. In Shanghai it was 27,034 yuan per square meter, up 0.31 percent on November but down 0.65 percent over a year.

The CIA is owned by SouFun Holdings Ltd (搜房控股), China’s biggest real estate Web site operator.

New properties are the most important part of China’s real estate market and the survey covers prices of both apartments, including those with prices regulated by the authorities, and houses.

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