Residential property prices in China rose 0.40 per cent in April, slightly slower than March, according to recently released data from the China Real Estate Index System. The data collected from 100 major cities showed that prices have risen for eight consecutive months causing concerns about real estate inflation,Property Wire reported. The index is watched widely since China abandoned its national property price index in January.
Property prices grew in 77 cities, while 22 cities posted a decline and the remaining city saw no changes. Overall, average home prices in April rose to 8,773 yuan ($1,351) per square meter from 8,738 ($1,345) in March.
Meanwhile, the Chinese government are trying to bring down property prices. President Hu Jintao said China’s construction of public housing remains an important task and the authorities will continue to increase financing for such projects and prioritize the allocation of land for such projects.
Talking to Property Wire, Larry Hu, director of Knight Franks LLP’s residential department in Shanghai said, “the government’s policy is working but home prices nationwide are unlikely to fall this year. There is a bubble in China’s real estate market, because many people can’t afford homes here.”
About 40 cities said in March they will cap new home prices below annual economic and disposable per-capita income growth or keep them steady following the central government’s measures to rein in housing values.
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