Home Prices Increases as Demand for New Homes Grows Strong
Average home prices in 70 Chinese cities have increase to a new high in November as demand for homes grows strong. As the country enters its 10th consecutive month growth in the home prices in November compared from a year earlier showed a turnaround that started in January. The year on year prices were high in 69 of the 70 cities for November compared to October.
While month to month home prices has also increase in 66 of the 70 of medium and large cities in November compared to October, Wenzhou is the only city that had prices that fell as home prices remain unchanged in the other cities then by October prices has increase in 65 of the cities. Prices are at an average of 9.10 percent in November as to 8.78 percent in October and 8.19 percent in September year on year. Month to month prices increase on average of .53 percent in November as compared to .59 percent in October and .67 percent in September.
The central government has long been tightening controls of the property sector for almost for four years as their efforts to cool the runaway home prices although the results are limited in first tier cities. Aside from these cities other cities such as Wuhan, Nanjing and Shenyang are now imposing further cooling measures. These measures includes the increase in the criteria in households without local permanent residence permits in order to qualify in purchasing homes and these measures also increase the down payment rates for second home buyers.