China’s home prices see monthly rise, but annual dropThe average price of property in China rose 0.05% month-on-month in October and sales revenues were up by almost a third year-on-year, according to a report by Reuters.
The October figures are the third month-on-month increase since May. Prices stayed level in September and June and increased in August and July.
The constant monthly increase is likely to cause concerns about property inflation, and force the country to further tighten property controls.
Luo Yu, a property analyst with CEBM in Shanghai, says, "China is likely to tighten policy, probably expanding the home sales restrictions to more cities where home prices are rising fast.”
Property prices saw a monthly rise in 35 out of 70 cities observed by the National Bureau of Statistics (NBS) in October – they fell yearly in 12. They included Beijing and Shanghai, which saw year-on-year falls of 0.2% and 1.3% respectively.
On the whole, prices across China fell 1.1% in October compared to the same month last year – the eighth consecutive yearly drop.
However, the decline was 0.2% less than September's year-on-year fall of 1.3%.
Despite that, figures from 9 November show that property sales revenues in the country have increased by 31.7% from last year.
The sales rise comes after Beijing lowered interest rates twice in the summer, and local Chinese governments relaxed property market restrictions.