Friday, February 18, 2011

House Prices Rise in 68 of 70 Chinese Cities for January 2011

Not really surprising news, but it marks time for the archive of events.

China Home Prices Rise in Most Cities, Defying Curbs
New home prices in the capital Beijing advanced 6.8 percent in January from last year, while Shanghai climbed 1.5 percent, the statistics bureau said on its website today, initiating a new method of calculating prices. Haikou had the biggest gain, surging 21.6 percent, and 10 cities had increases exceeding 10 percent. Housing values in the southeastern city of Quanzhou and the western city of Nanchong fell.
“Although property is being targeted with tightening measures, overall credit growth in the economy remains expansionary,” Erwin Sanft, head of China and Hong Kong research at BNP Paribas SA, said in an e-mail. “The memories of the 2008 downturn in exports and housing prices are still too fresh at central and local government level” to create another downturn.

A global truism: No one wants to prick a bubble. It doesn't matter the political philosophy.

Beijing banned residents from buying more than two homes and added a requirement for non-residents to provide five years of tax documentation to buy apartments, the capital city’s government announced this week.

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