Tuesday, 18 September 2012 09:01
BEIJING: China's home prices rose 0.1 percent in August from July, to show a modest increase for a second consecutive month and signal a gentle recovery in the property market as the government seeks to spur economic growth.
Real estate, which directly impacts around 40 other business sectors in China, is a key driver in the world's second largest economy, which is currently going through its worst slowdown in three years as growth in exports and factory output falls.
Despite the wider economy's problems, the government has waged a campaign for two years to cool an overheated property market in order to soothe discontent among middle-class Chinese who are increasingly priced out of the urban housing market.
China's ruling Communist Party is particularly keen to quell disquiet ahead of its once-a-decade leadership change scheduled for this autumn, a showcase event that the government would prefer to take place against a backdrop of rising ...