BEIJING, Sept 2 China's property inflation
quickened in August for a second straight month, two private
surveys showed, underlining strong momentum due to a recovery in
land prices and complicating the government's efforts to prevent
a property bubble.
Home prices in 288 major cities rose 1.1 percent in August
from July, accelerating from July's monthly increase of 0.8
percent, a poll by a real estate services company E-House China
From a year earlier, home prices jumped 11 percent in
August, unchanged from July's annual gains, E-House said.
A separate survey by China Real Estate Index System (CREIS)
showed average prices in the 100 biggest cities rose 0.92
percent on a monthly basis, slightly faster than the previous
China still faces record home prices that are well beyond
the reach of most ordinary citizens, despite having enforced
strict controls on the property market for nearly four years. A
strong property market, however, has been a crucial driver of
activity in the world's second-largest economy as other areas
such as exports slow.
That presents a dilemma for the authorities, as they look to
balance controlling a possible housing bubble and heading off
social unrest as prices surge, while not depriving the economy
of a growth driver.
"Continuously rising land prices have helped push up home
prices," said a statement from CREIS, a consultancy linked to
China's largest online property information firm Soufun Holdings
It added that some local governments have started easing
home purchase restrictions, which persuaded more buyers to enter
Last month, the eastern city of Wenzhou relaxed curbs on
property purchases to let some people buy second
In China's 10 most expensive cities, including Beijing and
Shanghai, average home prices rose 1.5 percent on the month and
12 percent on the year, CREIS added.
China is due to publish official home price data for 70
major cities for August on Sept. 18. The pace of China's
month-on-month home price rises edged down for a fourth month in
July though the year-on-year gains were the strongest this