[photopress:real_estate_keeps_rising.jpg,full,alignright]The National Development and Reform Commission reports that the average price of new residences in China’s 70 major cities rose 6% last month compared to a year ago. The growth rate is 0.1 percentage point higher than February.
Shenzhen’s housing price grew the fastest at 10.7%, followed by Changsha (10.1%), Beijing (9.9%), Guangzhou (8.6%), Chengdu (8.4%), Fuzhou (8%) and Xiamen (7.7%). Shanghai’s housing price began climbing after falling 3.2% last year.
China last year tightened credit to developers, boosted supervision over land use and increased the enforcement of tax policies to cool the property boom. Does not seem to have worked that well. Some commentators are saying that the cooling down will come with a rush immediately after the 2008 Olympics which means there is a while to go.
The commission said in a statement in January that the measures, mainly targeting affluent the eastern coastal cities achieved their objective of curbing the overheated investment in the real estate sector. In a sense this is true. In another sense, the sector is still on the boil.
Source: Shanghai Daily