China October home prices rise 12.3% from a year earlier

[BEIJING] Average new home prices in China's 70 major cities rose 12.3 per cent in October from a year earlier, accelerating from an 11.2 per cent increase in September, an official survey showed on Friday.

Compared with a month earlier, home prices rose 1.1 per cent, slowing from September's 2.1 per cent, according to Reuters calculations from data issued by the National Bureau of Statistics (NBS).

Shenzhen, Shanghai and Beijing prices rose 31.7 per cent, 31.1 per cent and 27.5 per cent, respectively, from a year earlier, but their monthly pace slowed significantly as tightening measures implemented by local governments took effect. Shenzhen prices fell 0.5 per cent on the month.

China has depended on a surging real estate market and government stimulus to drive growth this year, but policymakers are now concerned that property mania will fuel price bubbles and risk a market crash.

More than 20 cities introduced restrictive policies in October intended to tame fast-rising prices, causing a sharp decline in sales volume.

REUTERS