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Home prices rise faster than construction

Construction of new housing in China is lagging price increases as developers pare down inventories, The Wall Street Journal reported. Prices nationwide climbed 8.6% year-on-year in August and soared in major cities, according to data provider China Real Estate Index System on Monday. But the rising prices are doing little to boost construction – and so haven’t boosted the wider economy. Housing starts are returning to life only sluggishly – up 7.1% in the first seven months of the year, according to the government. Sales rose 27.1% to 547.3 million square meters over the same period.

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