Residential and commercial real estate prices in 70 cities across China rose a record 12.8% year-on-year in April, Bloomberg reported, citing the National Bureau of Statistics. The latest figures – exceeding the 11.7% increase in March, a record since 2005 – suggest that more drastic curbs are necessary to cool the housing market. This year China has already ordered developers not to take deposits for sales of uncompleted flats without approval, imposed tougher restrictions on second- and third-home purchases and increased banks’ minimum reserve requirement three times. Starting this month, Beijing will be the first city to limit residents to purchasing one new home. But some analysts feel the government’s cooling policies need time. "The only reason why April posted a gain was the low basis of comparison from last year," said Yang Qingli at BOCOM International. Prices will definitely drop this year, "by between 10% and 20%", Yang added.
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