New Home Prices in Chinese Cities Have Increased.

In August, residential property prices in major Chinese cities skyrocketed, perhaps triggering more government involvement to prevent a housing bubble. Jimmy johns

According to recent data from the National Bureau of Statistics, new property prices grew in 69 of 70 Chinese cities in August compared to the previous year. New property prices grew in 66 of the 70 Chinese cities tracked by the organisation in comparison to the previous month.

The highest rises were in the main cities of Beijing and Shanghai, which each saw a 15% increase over the previous year. New property prices in Shenzhen jumped 18 percent over the previous year.

However, there was a significant difference in performance between top-tier cities and lesser cities. According to the survey, annual growth in second-tier cities ranged from 7 to 10%, while rises in third-tier cities were closer to 6%.

According to media sources, overall property prices in China climbed by 7.5 percent year over year, the quickest rate since December 2010.

China's housing prices have risen dramatically in recent years, causing the government to implement a number of policies aimed at calming the market. Policymakers, on the other hand, have refrained from introducing additional measures in order to focus on the country's economic progress.

"The government appears to have tolerated growing housing prices and has not carried out fresh tightening measures," Zhiwei Zhang, an economist at Nomura, told CNN. "This... may partially reflect the struggle it confronts in meeting a 7.5 percent GDP objective."

Developers and investors have a restored sense of trust in the market, according to analysts, despite the lack of fresh recent initiatives.

According to Du Jinsong, a Credit Suisse analyst, the "continuing effort to present a picture of still-benign housing price conditions may signal that the central government wishes to deal with other concerns first before taking a very clear posture on the overall housing policies."

Previously, the government imposed limits on the number of properties citizens could purchase and raised the required down payment for second residences.

Some believe the government may be forced to take further action as a result of the recent increase in new property prices.

"The central government has dispatched inspection teams to various locations to guarantee that the home purchase restriction programs are being implemented, and some banks are raising mortgage rates by eliminating subsidies for first-time house purchasers," CNC Asset Management's Na Liu told the Financial Times.

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