BEIJING Nov 1 Average home prices in China's
100 biggest cities edged up for a fifth straight month in
October, a private survey showed, adding to evidence of a mild
recovery in the property market and frustrating government
efforts to temper steep prices.
Average home prices rose 0.2 percent to 8,768 yuan ($1,400)
per square metre in October, keeping pace with September's
increase, the China Real Estate Index System said on Thursday.
A steady rise in home prices will renew concerns about
property inflation, and could prompt Beijing to further tighten
property controls after its once-a-decade leadership change that
starts on Nov 8.
Property prices have perked up in recent months as Beijing
lowered interest rates twice to shore up economic growth. Some
local Chinese governments have also relaxed property market
restrictions to boost home sales.
The central city of Wuhan said last week it would allow
first-home buyers to borrow more from a government housing fund,
a statement on a government website showed.
Over 20 other local governments have let buyers borrow more
from the government's housing fund, which lends at lower rates
than commercial banks, data from local property consultant Home
"Though property transaction volumes in October were lower
than expected, they still kept to a relatively good trend," said
Zhang Xu, a property analyst from Home Link.
The pick-up in property prices mirrors signs of a broader
recovery in the world's second-largest economy. Two surveys of
the vast factory sector on Thursday suggested the economy is
finally regaining traction.
PRICES STILL FALLING YEAR-ON-YEAR
Compared to a year ago, however, home prices in China's 100
largest cities are still down 1 percent in October in the
seventh month of annual decline, data from CREIS showed.
CREIS, a consultant affiliated to China's largest online
real estate firm Soufun Holdings, only began
calculating annual changes in Chinese property prices in June
In the 10 biggest cities, including Beijing and Shanghai,
average home prices rose 0.3 percent from September, but were
down 0.6 percent from a year ago, the survey showed.
Firmer house prices are good news for real estate developers
bruised by China's two-year-old campaign to snuff out
speculation and cool record house prices by restricting
purchases, a policy stance Beijing vows to hold.
Ratings agency Moody's Investors Service said on Monday the
credit quality of Chinese developers is improving on the back of
rebounding sales and companies' ability to tap international
capital markets for funds.
China is due to publish its October home price data in 70
major cities on November 18. Prices were broadly flat in
September compared to August, calculations based on official
data showed, halting two months of upticks.