Property prices rise 10.5% in December

Housing prices in China’s 70 biggest cities rose 10.5% in December compared to the previous year, according to data released by the National Development and Reform Commission. The price increase matched November’s rate as the highest monthly rise on record, AP reported. In Beijing, prices were up 17.5%, compared to 9.3% in Shanghai and 6.1% in Guangzhou. Urumqi posted the fastest growth, with prices up 25.3%. The data suggests that the government is still struggling to rein in the real estate market despite three years of measures such as tighter lending standards aimed at reducing speculation and increased minimum down payments on second homes. The news comes as Chinese people face the highest rate of inflation seen in 11 years. The consumer price index rose 6.9% in November, with food prices alone rising 18.2%.