New-home prices keep rising in more Chinese cities, according to the National Bureau of Statistics. The prices increased in 39 cities, among the total of 70 major cities tracked by the government.
Meanwhile, new-home prices dropped in other 26 Chinese cities, and the prices remain unchanged in 5 cities. The numbers show December's on-month sales. In November, only 33 cities experienced rising in home prices, and the prices dropped in 27 cities.
Average new home prices in all 70 cities rose 7.7 percent in December. In November, the rise was only 6.5 percent. In yearly terms, the overall China's new home prices rose by 1.6 percent.
China's home prices have been seeing some improvement, especially since the government rolled out easing measures for regions with a surplus of homes on sale. But as the number shows, the recovery remains uneven with differences in cities across the country.
China, which is expected to drop to its weakest growth in 25 years has been pushing to a more evident recovery. According to Reuters, even a mild recovery in the housing market would ease China's concerns toward the steady slowdown in their economy growth.
The recovery in home-pricings is particularly important because property investment is one of the crucial drivers for China's economy. Unfortunately, the country's property investment growth hit the lowest rate since 2009 at 1.3 percent in the first 11 months of 2015.
China's authorities vowed last month to reduce home inventory excess. They even set the mission as one of their key tasks in 2016 as they expect more easing measures policy, according to Bloomberg.
Shanghai Daily stated that China's housing prices are expected to grow steadily this year. Although, the regional divergence between bigger and smaller cities will continue. Data shows that home-price increases in first-tier cities and some second-tier cities are wider than in others. The gap even widened because prices are dropping in most third-tier cities.
For now, China Index Academy reported that average new-housing price of 100 major cities stood at 10,980 yuan ($1671).
China's Shenzhen city experienced the most rise in house pricing. The southern business hub shows 3.2 percent increase in prices from November. It's the quickest pace of rising since the month before. The second top city to undergone home price increase is Shanghai, at 1.9 percent. Meanwhile, in the capital city of Beijing, the prices rose by 0.4 percent.
In addition to easing measures to stabilize the housing market, China also encouraged property developers to change marketing rules and reduce home prices properly in order to reach China's goal to reduce home inventory.
China Property: House-pricing rose in 39 cities, while authorities vowed to reduce home inventory
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