Property prices continue to rise
By Hu Yuanyuan (China Daily)
Updated: 2006-07-21 08:37
Property prices in China's major cities kept rising in June despite several
rounds of government control measures intended to cool the
sector.
Property prices in 70 large cities rose by 5.8 per cent
year-on-year, 0.7 percentage points higher than the growth rate in May,
according to a survey jointly released yesterday by the National Development and
Reform Commission and the National Bureau of Statistics.
"As the second
and third quarter is usually the hot season for the property market, the
climbing prices are understandable," Richard Wang, a researcher in Beijing with
the global real estate consultancy DTZ Debenham Tie Leung, told China
Daily.
"Besides, since some of the macro control measures are just
guidelines, the local governments are still working on detailed regulations, so
it will take some time for those policies to take effect."
Wang said he
believes the figures for July will be a better indicator of how the macro
policies work.
Since April the central government has introduced a series
of measures to try to cool the market, including raising the one-year benchmark
lending rate by 27 base points to 5.85 per cent, increasing down payments from
20 per cent to 30 per cent and introducing a minimum capital adequacy ratio of
35 per cent for property developers.
Prices for newly-built homes climbed
6.6 per cent last month compared with a year earlier, 0.5 percentage points
higher than the previous month.
Residential property prices in Shenzhen,
a booming city in South China's Pearl River Delta region, jumped 14.6 per cent
on a yearly basis, boasting the highest increase among the 70 cities
surveyed.
The next highest rise was in Beijing, which reported a 11.2 per
cent year-on-year hike in residential property prices.
(For more biz stories, please visit Industry Updates)
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