BEIJING Aug 17 Officials throughout China must
work to stabilise the real estate market after property prices
shrugged off a tightening campaign and rose in July, the
powerful central planning agency said.
Property prices rose 1.6 percent in July from a month
earlier to an average of 8,680 yuan ($1,276) per square meter,
the National Development and Reform Commission (NDRC) said in
announcing the results of its survey of 36 large- and
Increases were particularly large in a number of second-tier
cities, while prices were steady in major cities, it added.
"Many cities are stable. In some cities, price increases are
quite large. Every locality should continue the work of
stabilising property prices," the NDRC said on its website.
The Chinese government has been trying to cool its real
estate market after prices soared earlier this year. While price
rises have slowed and transaction volumes have fallen sharply,
many Chinese still view property as a good investment.
Developers have called for a loosening of controls, but the
latest data appeared to underscore officials' concern that
prices could take off again if the tightening policies, such as
higher downpayment requirements, slacken.
The results of the NDRC survey contrasted with an index of
70 cities published last week by the National Bureau of
Statistics, which showed that property prices were unchanged in
July from June. [ID:nBJB003897]
The 36-city index is based on information gathered by the
NDRC's price monitoring bureau, while the statistic agency's
70-city index is compiled primarily from developers' replies to
In its breakdown of the data, the NDRC said that prices for
ordinary homes rose 1.2 percent in July from a month earlier,
while prices for high-grade homes fell 1.4 percent.
Commercial property price rose most sharply, up 6.7 percent
from a month earlier.
Vice Premier Li Keqiang, who is positioned to replace Wen
Jiabao as premier in 2013, said on Friday that the government
would not relax its policies aimed at curbing speculation in the
property market. [ID:nBJA002290]
(Reporting by Simon Rabinovitch; Editing by Ken Wills)