China's March home price growth slows

[BEIJING] Price rises for new homes in China slowed in March for the third straight month, an independent survey showed, as authorities say that they are looking to curb high housing costs.

The average price of a new home in 100 major cities rose 10.04 per cent year on year in March to 11,002 yuan (S$2,236) per square metre, according to the China Index Academy, which compiled the survey, released late Monday.

The increase compared with a rise of 10.79 per cent in February, according to the academy, the research unit of real estate website operator Soufun.

The number of cities where new home prices grew by more than one per cent decreased, the academy said in its release, which "indicates real estate prices in most cities are steadying further".

The government has sought for more than three years to contain rising property prices, while also promising to increase the supply of affordable housing as price increases stoked discontent among ordinary citizens.

But at the same time, local authorities in China make much of their income from land sales to developers.

Market control measures have included restrictions on purchases of second and third homes, higher minimum down-payments and taxes in some cities on multiple and non-locally owned homes. Prices in March rose 0.38 per cent from the previous month, the data showed, slowing from February's increase of 0.54 per cent, but still marking the 22nd straight month-on-month gain.

Beijing led the rise in new home prices among the 10 biggest Chinese cities in March, with the average cost increasing 27.13 per cent year on year to 33,069 yuan per square metre, the data showed.

Prices in the southern city of Guangzhou increased 20.48 per cent year-on-year and those in nearby Shenzhen gained 19.02 per cent.

In Shanghai, China's commercial capital, the average cost of a new home came to 32,339 yuan per square metre, up 14.89 per cent from the same month a year ago. - AFP