Fin24

Chinese house prices on the rise

2012-11-18 10:25

Beijing - More Chinese cities reported rises in house prices in October than in September, data showed Sunday, the first gain in three months as the government works to keep the property market in check.

Prices in 35 out of 70 cities tracked by the government rose month-on-month, the National Bureau of Statistics said in a statement, up from 31 cities in September, and the first increase since July.

Prices of new homes dropped in October in 17 cities and remained unchanged in the remaining 18 cities, it said.

China has implemented measures to control property prices for more than two years, including prohibitions on buying second homes, requiring higher minimum down-payments and levying property taxes in some cities.

Officials have said that property control measures are aimed at bringing down home prices to a "reasonable" level.

China's slowing economy has recently exhibited signs of a turnaround, with exports, retail sales and industrial production data all showing renewed vigour.

Expansion in the world's second-largest economy has slowed for seven straight quarters through the end of September, but economists are expecting growth to accelerate during the current three-month period through December.

Beijing expects gross domestic product to grow 7.5% in 2012, a marked slowdown from the 9.3% recorded in 2011 and 10.4% in 2010.

The government is aiming to rebalance China's economy away from reliance on exports and more towards domestic demand in coming years in hopes it can steer growth onto a stable and sustainable track.