Residential land prices in China surged an average 7.91% last year, after stimulus measures fueled an increase in real-estate investment, the Ministry of Land and Resources said. The jump was even more dramatic in China’s largest cities, known as first-tier cities, where the average price for residential land soared 19.6% in 2016 over the previous year, Caixin reports. These increases came on top of big spikes in 2015: Overall in China, the average residential land price jumped nearly 4%, and 10.9% in the first-tier cities, official data showed. Zhao Song, an official with the Ministry of Land and Resources, attributed the increase on Monday to the impact of stimulus measures such as property tax reductions, easy access to loans and property destocking plans on the real-estate market. Real-estate investment grew 6.9% year-on-year in 2016, and residential property investment, which accounts for about 67% of total real-estate investment, increased 6.4%, official data showed.
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