Saturday, May 18, 2013

China Home Prices Increase

China’s new home prices rose including Beijing and Shanghai as buyers defied the government’s latest round of property measures. Prices increased in 68 of the 70 cities the government tracked last month from a year earlier, the National Bureau of Statistics said in a statement today.

Thirty-five provincial-level cities have issued details of property curbs by an April 1 deadline in response to the central government’s measures imposed in March. Only the capital city of Beijing issued the toughest measures, raising the down payment on second homes and strictly enforcing a 20 percent capital gains tax on existing homes, according to Centaline Property Agency Ltd., the country’s biggest real estate agency.

“Home prices continued to climb because the direct impact of the curbs is hitting on home sales, while it’ll take several more months to slow the prices,” said Lan Shen, a Shanghai-based economist at Standard Chartered Plc. “Policies haven’t been strictly enforced on the local level.”

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