In October, the home prices in China increased in many cities when compared to last month, which indicates that the Chinese government will resist from calming curbs on the assets market.
The data from the statistics bureau yesterday reported that the prices jumped in 35 cities of the 70 cities that were tracked by the government. In September, only 31 cities have seen a rise in the prices. Prices dropped in 17 cities in October.
Shen Jian-guan, a Hong Kong-based economist said that the government has sent indications that it will not release property policies as they are not willing to see a huge price rebound. The government is likely to declare victory for holding property prices at the National People’s Congress meeting that will be held on March 2013.
Urumqi-Northwestern city had gains in October by a 0.5 percent rise from September. The southern business centres of Shenzhen and Guangzhou recorded growth of 0.4% each. The prices in Beijing rose 0.2%, while the prices were unchanged in 17 other cities and also in Shanghai.
Alan Jin, a Hong Kong-based property analyst before the data was released, said that the government desires to maintain the curbs as slow price growth and steady sales are the situations it wishes to see, while more tightening will weaken an uncertain improvement in the Chinese economy.
China’s GDP dropped to 7.4 percent in Q3 from last year; it was the least since three years, while the gauges of retail sales and manufacturing have showed a recovery.
ANZ’s Liu said that by the unchanged and rising prices in most of the cities, the downward trend has been controlled in China.
Existing home prices in Shanghai rose 0.2 percent in October, while the prices were unchanged in Beijing.
China’s real estate prices rose 160% in the period during 1998-2008 after privatizing of the property market by the government.
China Securities Journal reported that majority of the Chinese’s cities are planning to bring in property tax trails. It said that the central government is yet to decide their timing and scale.
Private data also reported that the there is stability in the housing market. SouFun Holdings Ltd, the nation’s biggest real estate website owner said that the home prices gained 0.17% in October, progressing for a fifth month.
Ryan Li, an analyst at JPMorgan Chase & Co., said that the contracted sales at 11 main developers were $9.2 billion in October, up by 24% from September and 41% from last year.