Property prices continue upward creep

Chinese house prices rose 0.4% in April compared with March, the eighth consecutive monthly increase, and climbed in 77 of 100 tracked cities, Bloomberg reported, quoting data from real-estate firm Soufun Holdings (SFUN.NYSE). The April gain was, however, the smallest month-on-month gain in the last eight months, a sign that the government’s higher lending rates and tougher restrictions on housing purchases are taking effect. Average home values climbed to RMB8,773 (US$1,349.70) per square meter in April, Soufun said, while transactions fell an average of 25%. State media quoted Premier Wen Jiabao as saying May 1 that China is determined “to bring down the high-flying housing prices in some cities.” Wen’s comments may help to correct a misconception in the stock market that the government only wanted to slow price growth, rather than reverse it, Credit Suisse (CSGN.VTX) said.