Q3 residential land price gains accelerate, but housing glut may be bigger still

Residential homes’ average price per square meter in 105 Chinese cities rose 3.5% to RMB5,421 (US$854.58) in the third quarter compared to a year earlier, marking the first acceleration in 18 months, Reuters reported, citing the land ministry’s China Land Surveying and Planning Institute. The quickened pace – viewed as a prelude to growing home prices – bolsters claims that China’s housing market has finally steadied. However, The Wall Street Journal reported that the housing glut may be worse than indicated by official statistics, which don’t account for unfinished homes that don’t have permits for sale but which may be as market-ready as many that already do.