[HONG KONG] China's new home prices rose further in May, two private surveys showed on Wednesday, with values rising at their fastest pace in second-tier cities and reinforcing concerns that some parts of the property market are overheating.
Prices of new homes in 100 biggest cities in May rose an average 10.3 per cent from a year earlier, quickening from 9 per cent in April, a poll by property services firm China Real Estate Index System (CREIS) showed.
Against the previous month, May home prices were up 1.7 per cent from April, compared with a 1.45 per cent gain in the previous month.
"Growth in first-tier cities were flat from the previous month, while growth in second-tier accelerated further and their-tier contracted slightly," CREIS said in a statement.
"Looking forward, some cities still see overheating risks in both housing and land market, so government will continue to monitor closely and introduce tightening measures."
China's home prices posted their fastest growth in two years in April, official data showed, with gains in regional centres indicating a broader recovery in the country's housing market beyond the major cities.
China's eastern cities of Nanjing and Suzhou last month limited the highest bidding price developers can offer in land auctions, in an effort to control surging land costs that have been driving up home prices.
A separate survey by Real Estate Information Corporation (CRIC) showed average prices in China's 288 cities rose 8.8 per cent in May compared with year-earlier levels, the tenth consecutive year-on-year rise.
The prices climbed 1.6 per cent from April, also accelerated from 1.5 per cent in the previous month.
The survey said among the 288 cities, 169 showed a rise in prices, eight cities less than April, reflecting more efforts would be needed to ease the housing glut in smaller cities.