BEIJING, Dec 3 (Reuters) - China’s home prices edged up for a sixth straight month in November, a private survey showed, reinforcing signs of a gentle recovery in the property market as the government seeks to bolster economic growth.
The average home price in China’s 100 biggest cities rose 0.3 percent in November from October to 8,791 yuan ($1,400) per square metre, accelerating from October’s 0.2 increase, the China Real Estate Index System (CREIS) said on Monday.
Rising home prices could reignite official concerns about property inflation and trigger fresh property curbs. Analysts attribute home price rises to a series of government measures enacted in recent months to support the economy.
The increase in property prices coincides with signs of a broadening economic recovery, as two purchasing managers’ index(PMI) surveys showed the pace of growth in the manufacturing sector quickening.
“The property market has shown an obvious trend of recovering in November,” said CREIS, a consultant affiliated to Soufun Holdings, China’s largest online realtor.
Property sales rebounded most cities in November while developers’ unsold inventory shrunk, CREIS added.
In the 10 biggest cities, including Beijing and Shanghai, average home prices rose 0.4 percent from October and were up 0.2 percent from a year ago, the first year-on-year increase so far this year, the survey showed.
Home prices rose month-on-month in 60 cities monitored by CREIS in November, up from 56 in October.
Compared to year ago, however, average home prices in China’s 100 largest cities are still down 0.5 percent in November in the eighth month of annual decline. Prices also fell in 62 of the 100 cities in November on a year-on-year basis.
CREIS only began calculating annual changes in Chinese property prices in June 2011.
The Chinese government is due to publish November home prices in 70 major Chinese cities on December 18. Home prices in these cities rose 0.05 percent in October from September, extending a modest increase into a third straight month.