BIZCHINA / Center
Property price growth in May quickens; Up 6.4% on year
(Dow Jones)
Updated: 2007-06-14 17:12
China's economic planning agency said Thursday growth in the country's
property prices quickened in May, raising the likelihood of further
measures to prevent overly rapid price increases in the sector.
Property prices in 70 of China's large and medium-sized cities in May
rose 6.4 percent from a year earlier, faster than the 5.4 percent growth
rate in April, the National Development and Reform Commission said in a
statement on its Web site.
The statement on the pickup in property prices comes a day after the
State Council, the Cabinet, said it will control overly rapid increases
in property prices. It also accompanies last month's consumer price
inflation rate of 3.4 percent, which was the fastest gain in over two
years.
Related readings:
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Beijing plans to bar affordable housing trading
Beijing real estate prices still high Striking a strange balance
Among recent efforts to cool the property sector, the central government
on Monday directed local governments to strengthen their supervision of
foreign investment in the real estate sector, especially in high-end
luxury developments.
China has been grappling with the flood of liquidity resulting from its
large external imbalances. Investors have put funds into the share and
property markets, raising the possibility that an asset bubble is forming.
The price of newly built residential units in May rose 6.6 percent from a
year earlier, 1.3 percentage point faster than in April, the agency said,
adding that prices in Beijing rose 10.3 percent.
Prices of second-hand residential units rose 6.8 percent in May, up 0.7
percentage point from April.
Non-residential property prices grew 5.3 percent, up 0.4 percentage point
from April, the agency said.
(For more biz stories, please visit Industry Updates)
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