Recent Increase in Home Prices Shows Signs of Recovery
From December to earlier last year, average home prices in a hundred major cities in China have edged up .03 percent which cut eight months of decline and reinforcing signs of recovery in the property market. Data from China Real Estate Index System also added to signs that the property market found support from a broad monetary policy that is aimed to ease a reviving economic growth despite pledges from the Central Government to maintain curbs that is specifically made for the property sector.
The rise in home prices might reignite concerns about property inflation and might also trigger fresh property curbs. The increase in property prices also coincides with the signs of a broadening economic recovery as surveys showed the pace of growth in the manufacturing sector. There is also a low possibility of a sharp increase in home prices in 2013 nationally.
The ten biggest cities in China including Shanghai and Beijing showed that the average home price have risen 0.5 percent from November and was up 1.1 percent a year ago which is a second year on year increase in 2012.
The fight against property speculation is on its third year mow and middle class Chinese feels that they are being priced out in the urban housing market. A recent rise in land costs which is typically a prelude for an increase in home prices changed the market sentiment and pushing potential buyers back to the market in hopes of buying a home before prices will start rising even further.