The latest figures from the National Bureau of Statistics show that real estate prices in China increased 0.3% in November and are now 7.7% higher than a year ago. Prices have now risen for three months in a row in China’s 70 largest cities, and only six cities posted a drop.
The central bank raised interest rates in October for the first time in three years. It has so far had little effect. Figures show that China’s property investment rose 36.7% to RMB462.8 billion (US$69.4 billion) in November from a year earlier, and increased 36.5% for the first 11 months of the year.
PropertyWire reports that, according to the Chinese Academy of Social Sciences, about 35 Chinese large and medium sized cities are overpriced by an average of 29.5%. Seven cities, including the eastern city of Hangzhou near Shanghai, have homes which are priced 50% above their assessed values.