Home prices in China rose at the fastest pace in eight months in April after curbs failed to curb buyer enthusiasm.
New home prices in 70 cities, with the exception of state-subsidized housing, have risen 0.48% since March, when they gained 0.41%, according to data from the National Bureau of Statistics on Monday. Values in the secondary market, which faces less government intervention, rose 0.4% at the same rate as a month earlier.
Buyers’ euphoria continues as investors use real estate as a hedge against global inflation. This prompted the authorities to issue drum statements designed to cool price expectations. To date, home sales have more than doubled over the same period in 201
Xi at the end of April he reiterated his mantra that houses were “for living, not speculation” when they chaired a meeting of China’s 25-member Politburo, the Communist Party’s top governing body. Last week, politicians signaled that they could resume efforts to introduce a long-delayed national real estate tax by trial.
“The domestic market remains somewhat out of control, the wider the curbs, the more resilient the market becomes,” said Ian Kevy, director of research at China Real Estate Information, before the data was released. “That is why a lawsuit to collect home ownership may come earlier than expected, as stronger evidence of the strength of the policy.”
Rising prices accelerated in large and small cities, as developers accelerated the launch of projects during the traditionally fast sales season to get their money back. Real estate sales increased by 35% compared to a year earlier, separately displays a data message.
Price growth was particularly sharp in the second-tier regional centers, given their relatively weaker constraints and higher demand for further granting centuries-old hukou living permits. Cities where housing prices are up 1% or more since March include Wuhan, the former epicenter of the coronavirus pandemic, and Haikou, the provincial center of tropical Hainan.
“With the help of Charlie Zhu and Emma Dong.”
(Updates with more details on price gains from paragraph 6)