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China new home prices edge up 0.4 pct in June - CREIS
July 1, 2011 / 10:23 AM / 6 years ago

China new home prices edge up 0.4 pct in June - CREIS

BEIJING, July 1 (Reuters) - The average price for a new home price in 100 major Chinese cities edged up 0.41 percent in June to 8,856 yuan ($1,370) per square metre, slowing from a 0.53 percent rise in May, as government tightening steps bite, a private data provider said on Friday.

China Real Estate Index System (CREIS), which is affiliated to Soufun , the country’s largest online real estate firm, said prices rose 5.2 percent last month from a year earlier, quickening from May’s 5.1 percent rise.

The data gives a snapshot of China’s housing inflation before the National Bureau of Statistics releases its official figures on the 18th of every month.

“Price rises will be further curbed in the second half and some cities may see a fall,” said Huang Yu, executive vice president of CREIS.

“The Chinese government will not relax its tight policy and the measures will have an increasing impact on secondary cities later this year,” she added.

The CREIS said new home prices in top 10 cities increased at a much slower pace of 2.87 percent in June from a year earlier, and remained unchanged last month from May at 15,829 yuan per square metre.

Price rises were faster in third- and fourth-tier cities such as Weifang and Lanzhou rather than in first- and second-tier cities, according to CREIS.

That is a trend also shown by data from the statistics bureau. New home prices in 70 major cities rose 4.1 percent in the year to May, according to Reuters’ calculation of data provided by the agency, slowing from April’s annual rise of 4.3 percent.

China has rolled out a slew of measures, including credit controls and purchase restrictions, to cool down home price rises and curb speculation as part of its wider effort to keep inflation in check without hurting economic growth too much.

Separate surveys on Friday indicated China’s factory sector grew at its slowest pace in 28 months in June as weaker export orders and tight monetary policy pinched output.

Some market watchers said Bejing may now be less aggressive in tightening policy later in the year, but others argued that taming inflation remained policymakers’ more immediate worry. ($1 = 6.464 yuan) (Reporting by Langi Chiang and Kevin Yao)

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