China's new home prices accelerated in October, led by gains in smaller cities, suggesting a key driver of the country's economic growth remained intact despite slower investment and increasing economic headwinds. Average new home prices in China's 70 major cities rose 1.0 percent in October from a month earlier, a touch higher than the previous month's reading of 0.9 percent, according to Reuters calculations based on an official survey on Thursday.
While solid growth in the sector could cushion the impact of a vigorous multi-year government crackdown on debt and escalating trade tensions with the United States, it could also stoke fears of a bubble if prices climb too quickly.
The data shows the 42nd straight month of price increases, Reuters calculation showed, defying tougher curbs designed to rein in a near-three year real estate boom that has spilled over from megacities to the hinterland. In a sign strength remains broadbased, 65 out of the 70 cities surveyed by the National Bureau of Statistics (NBS) reported a monthly price increase for new homes, compared with 64 in September.
Compared with a year ago, new home prices rose 8.6 percent, the fastest pace since July last year and quickening from September's 7.9 percent gain and according to data issued by the NBS.
Comments
Comments are closed.