An increase in house price is recorded in China with 1.6 percent year on year raise for the third consecutive month while a 7.7 percent average increase was noted in December compared to a year earlier, according to a Reuter survey.
Said data may be a sign that China is starting to recover from a slowdown in the real estate sector which has affected the declining economic growth of the nation. Last year, China's GDP was at 7 percent which is the slowest recorded for six years, Premier Li Keqiang said.
Developers even struggle for many unsold properties after new home constructions were done in the area. Meanwhile the rates for personal housing are low which is recorded as lowest in five years, China Daily reported.
With that, the government tried different measures to boost the market by cutting interest rates six times more than that of the past years and reducing the requirements for down payments on new residential properties.
In December, prices of new homes rose in 39 out of 70 cities rose, wherein 7 cities had property rises which wasn't observed in November, while 27 cities has property price decrease.
“Prices increased quickly in first-tier and some second-tier cities, and declined further in third-tier cities due to oversupply,” said Liu Jianwei of China’s National Bureau of Statistics.
In Shanghai, new home prices are up to 2.1 percent in December compared with that of November, and it rose 18.2 percent year on year. Beijing has a 10.4 percent rise for the year, while in the southern city of Guangzhou, prices rose by 9.2 percent. The highest rise is observed in Shenzhen wherein it has 3.2 percent in December compared with the previous month but rose fully to 47.5 percent over the course of 2015, International Business Times reported.
This increase in Shenzen is due to the open policies in the area wherein many home buyers could get a local residency permit which qualifies them for local social welfare benefits and the area also has better air quality than other cities.
