Reuters: Mega cities fan China’s home prices further in test for policymakers
Tue February, 2021, Age: 2 years
Home prices in China continue to grow despite government efforts to subdue price growth and concomitant risks of a housing bubble. According to Reuters: “Average new home prices in 70 major cities increased by 0.3% in January from a month earlier, the fastest growth since September.” As the economy continues to bounce back from its brief Covid slumber, Chinese authorities have put in place curbs to help check property sector price increases. Nevertheless, loan applications reached new highs in January with household loans (primarily mortgages) double their December volume. “We should stay alert to the resurgence of house price rises or market speculation, especially if the coronavirus epidemic is effectively controlled and the economy stages a solid rebound,” said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution.