Prices Climbing in China Despite Govt Cooling Measures

Residential property prices in China climbed by 0.95 per cent in January compared to the previous month, according to private data provider China Real Estate Index System (CREIS). The price increase comes despite a rash of steps to contain property inflation since late 2009, including a trial of a long debated property tax in Shanghai and Chongqing....

Residential property prices in China climbed by 0.95 per cent in January compared to the previous month, according to private data provider China Real Estate Index System (CREIS).

The price increase comes despite a rash of steps to contain property inflation since late 2009, including a trial of a long debated property tax in Shanghai and Chongqing. CREIS said home prices stood at an average 8,645 yuan per square metre in the 100 cities it covers in its survey.

Sylvia Wong, a Hong Kong based property analyst for UOB Kay Hian, commented: "The market hasn’t really responded to the government's policies yet. Let's focus on February's data to see if the strong government curbs really work."

The news follows the results of another index from the country's biggest property website, SouFun Holidays, which also indicated a similar price gain had occurred.

It said that prices increased by one per cent in January, with residential values in all 100 cities tracked by the firm climbed from December.

- Tuesday 15 February 2011

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