BEIJING Jan 4 Average home prices in China's
100 major cities edged up 0.03 percent in December from a year
earlier, snapping eight months of decline and reinforcing signs
of a recovery in the property market, a private-sector survey
showed on Friday.
The data from China Real Estate Index System (CREIS) added
to evidence that the property market has found support from
broad monetary policy easing aimed at reviving economic growth,
despite central government pledges to maintain curbs specific to
the property sector.
Rising home prices could reignite official concerns about
property inflation and trigger fresh property curbs.
The increase in property prices coincides with signs of a
broadening economic recovery, as two purchasing managers'
surveys this week showed the pace of growth in the manufacturing
"There is a low possibility of a sharp rise in home prices
nationally in 2013, since the destocking process has not
finished," CREIS, a consultancy affiliated to Soufun Holdings
, China's largest online real estate company, said in a
Although the survey marked the first increase in prices over
a year earlier for some months, it also showed the seventh
straight monthly increase. Average home prices in the 100
largest cities rose 0.2 percent in December from November.
In the 10 biggest cities, including Beijing and Shanghai,
average home prices rose 0.5 percent from November and were up
1.1 percent from a year ago, the second year-on-year increase in
China's fight against property speculation has headed into
its third year, but middle-class Chinese still feel priced out
of the urban housing market.
A recent uptick in land costs - typically a prelude to home
price rises - have changed market sentiment and pushed
prospective home buyers back to the market in a bid to buy
before prices rise even further.
The Chinese government is due to publish December home
prices in 70 major cities on January 18. Home prices rose 0.3
percent in November from the previous month, after a 0.05
percent rise in October, official data showed.
(Reporting By Xiaoyi Shao and Lucy Hornby; Editing by Neil