Home prices continue to climb in China
Property prices in China ended 2013 still red hot despite repeated government efforts to cool the sector, but the rises are expected to soften this year as more targeted policy to curb it goes into place.
Of a statistical pool of 70 major Chinese cities, 65 saw a month-on-month rise in new home prices and 64 reported price gains in existing and second-hand homes in December last year, the National Bureau of Statistics (NBS) announced online on Saturday.
More cities saw price growth ease in December, a result the senior NBS statistician Liu Jianwei attributed to a raft of government efforts to stabilize market expectations, including more controls and increase the affordable housing supply.
Monthly price gains retreated 0.1 percentage points in Beijing, Shanghai and Guangzhou and 0.4 percentage points in Shenzhen from those seen a month earlier.
On a yearly basis, all the cities except Wenzhou reported gains in new home prices.
First-tier cities continued to lead rises last month, with the prices of new homes in Beijing and Shanghai surging over 20% from a year ago, but Liu said the trend has been losing momentum.
'Property controls will continue into the new year, but with more focus on region-specific approaches,' noted Kuang Xianming, head of the economic research center at Hainan's China Institute for Reform and Development.
After years of increases more or less everywhere, price movements have become more diversified in recent months, with megacities still facing upward pressures while smaller cities are in a more balanced state, prompting local authorities to adopt differentiated measures to steady the market.
Rather than new measures to curb property prices, the Central Economic Work Conference last month stressed the need for affordable housing, a plentiful supply of land, and a new mindset among the leadership to allow freer reign to market forces.
The increasingly clear policy direction will steer the property sector onto a healthier track, said a report by the China Index Academy.
In the context of stable economic and monetary growth, the academy forecast slower rises in both home sales and prices this year, and a steady increase in new property investment.
The average prices of residential housing will rise by 7%-7.6% in 2014, the academy predicted.
Driven by rapid urbanization and speculation, China's property market has taken off in recent years and become a major headache for the authorities as more people are priced out of the market.
The traditional Chinese mindset of viewing home ownership as a precondition for starting a family, along with limited investment channels, means demand will keep rising.
Over the years, in response to public complaints, the central government has tried to rein in prices with purchase controls and experimental property taxes, resulting in a short term cooling of the market, though prices subsequently saw a rebound.
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