ChinaÃ¢â‚¬â„¢s real estate prices rose for a 19th month in December, raising concerns that the government will expand curbs to limit the risk of asset bubbles in the worldÃ¢â‚¬â„¢s fastest-growing major economy. Property stocks fell.
Prices in 70 cities rose 6.4 percent in December from a year earlier, the smallest increase in 13 months, according to data from China Information News, the statistics bureauÃ¢â‚¬â„¢s newspaper. ThatÃ¢â‚¬â„¢s less than the 7 percent median estimate in a Bloomberg News survey of six economists. Prices gained 0.3 percent from November, the newspaper said today.
Home prices increased even as China suspended mortgages for third-home purchases and pledged to speed up trials of real estate taxes. The PeopleÃ¢â‚¬â„¢s Bank of China raised interest rates again on Dec. 25, after increasing them for the first time in three years in October.
Ã¢â‚¬Å“Home prices are still rising, especially for existing homes, and that may lead to concerns that the government will continue its tightening of the property market and more cities will impose a limit on home purchases,Ã¢â‚¬Â said Cathy Yin, an analyst at Shenyin Wanguo Securities Co. in Shanghai. Ã¢â‚¬Å“Investors are using that as a catalyst to sell property stocks.Ã¢â‚¬Â
Prices of existing homes climbed 0.5 percent in December, the most in three months, according to the report.