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SG Buying rush pushes up China home prices

Property Here - Tuesday, April 02, 2013

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By Nikki De Guzman:

Home prices across 100 major Chinese cities rose in March, according to an independent survey by the China Index Academy.

New home prices grew 3.9 percent year-on-year to average CNY9,998 (S$1,994) psm. In February, it moved up 2.48 percent.

The increase was attributed to buyers rushing their purchases to beat new government policies aimed at curbing speculation. 

The study also revealed a 1.06 percent uptick month-on-month in March, continuing a run of increases for the 10th month.   

China recently announced new measures to control housing prices, including a 20 percent nationwide capital gains tax on profits of property sellers.

Major Chinese cities like Beijing and Shanghai are now unveiling detailed policies on how the central government's regulations will be implemented.

“Against the unclear policy trend, most buyers caught 'the last bus' to enter the market,” said the China Index Academy. “A portion of demand surged into the market accelerating the housing purchase process on panic and psychological pressure from worries over an increase in tax.”

In the last three years, China has sought to moderate prices of residential properties with measures including restrictions on second and third home purchases, higher minimum downpayments and taxes on non-locally owned homes.   

 

Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg