Residential property prices in 100 major cities in China rose 0.59% in March from February, faster than February's 0.48% increase, China Real Estate Index System said Friday.
China Real Estate Index System said property prices in 82 cities grew in March compared with the previous month, while 16 cities posted a decline in property prices over the same period. The remaining two cities posted no change. Seventy-four cities posted price increases of less than 1%, it added.
Beijing to Stabilize New Home Prices Like Other Cities
Beijing said it will stabilize new home prices this year and aims for a drop from 2010, the local government announced on its website late yesterday. Shanghai said on March 28 it will limit gains in new home prices to no more than the pace of economic growth and average income expansion.
About 40 Chinese cities said they will cap new home prices below annual economic and disposable per-capita income growth after local governments were ordered to submit home price control targets by the end of March.
Among the cities that announced targets, most connected home prices with the cities’ economic and income growth. Shanghai forecast in January that the city’s economy will expand 8 percent in 2011. It grew 9.9 percent last year from 2009, while average incomes jumped 10.4 percent.
If they are going to use averages to make their targets there is no worry. Although, this will create some new tension if rumors of large amounts of unreported income are true. Local governments are going to be ferreting those out to make their targets, given that it will be more profitable to report larger wage increases than to control property prices.