China's new home prices rise at fresh record pace

China new home prices hit a fresh record growth rate in November, despite repeated measures by Beijing to cool the red-hot property sector. 

 

Prices of new homes rose 9.9 percent in the month from the year ago period, according to Reuters calculations based on data from the National Bureau of Statistics Wednesday. This compares to an annual rise of 9.6 percent in October. 

 

On a monthly basis, prices climbed 0.5 percent, compared to 0.6 percent in the previous month.

In Shanghai, new home prices rose 18.2 percent from the year-ago period, while prices in Beijing logged a 16.3 percent climb year on year.

According to Donald Han, Managing Director at property consultancy Chesterton Singapore, this adds pressure on China to do more to curb demand. 

 

"Looking at the current scheme of things, we think the government will probably keep it status quo at least in the next 3 to 6 months and potential new measures may come in the second half of 2014," he said. 

 

"New measures could include widespread property tax measures, particularly in first and second tier cities, continue releasing more land supply, which would calm markets in supplying more properties to meet demand. Third component will be through fiscal measures, curbing loans and credit." 

Home prices in China have continued to set records despite a campaign by the government in recent years to cool the market. There are concerns over the risk of social unrest if housing becomes unaffordable