China Major Cities Home Prices Surge, Raising Bubble Concerns
New home prices in China 's four major cities rose the most since January 2011 last month amid strengthening demand as the government refrained from adding to nationwide property curbs.
Prices climbed in 69 of the 70 cities the government tracked in September from a year earlier, led by 20 percent increases in the southern business hubs of Shenzhen and Guangzhou, the National Bureau of Statistics said in a statement today. Prices in Beijing rose 16 percent and advanced 17 percent in Shanghai, the biggest gains since the government changed its methodology for the home data in 2011.
Some Chinese cities are facing increasing pressure to meet annual home-price targets they set earlier this year and to cap gains at the growth rate of local disposable incomes. Premier Li Keqiang has come up with no additional measures to rein in property prices since his predecessor Wen Jiabao stepped up a three-year campaign in March to cool the housing market, ordering the central bank to raise down-payment requirements for second mortgages in cities with excessive cost gains.
For the fifth month in a row, the eastern city of Wenzhou was the only one to post a decline, with prices dropping 1.7 percent from last year.
To contact Bloomberg News staff for this story: Bonnie Cao in Shanghai at bcao4@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
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