China's red-hot housing market is still accelerating

Photo by S. R. Gaiger / Topical Press Agency / Hulton Archive / Getty Images

China’s property market remains red-hot, perhaps amplified by attempts from policymakers to cool it.

According to data released by China’s National Bureau of Statistics (NBS) on Friday, new home prices rose by 11.2% in the year to September, accelerating from the 9.2% pace seen in August.

Over the month, prices rose by 2.1%, according to calculations from Reuters, an increase from the 1.5% increase in August.

While the NBS no longer releases nationwide year-on-year price data, the annual increase was the fastest seen in at least the past five years.

Of the 70 cities surveyed by the NBS, Hefei and Xiamen, second-tier centres, had the fastest annual price growth of all cities surveyed, recording enormous price gains of 46.8% and 46.5% respectively.

Shenzhen, Shanghai and Beijing — some of China’s largest cities that led the broader national recovery — saw prices jump by 34.1%, 32.7% and 27.8% over the same period.

At least 21 Chinese cities have implemented measures to stymie rapid house price growth in recent months, although many were only announced in October.

Markets will be paying close attention to the October figures when they’re released in late November, especially given signs that property prices are accelerating, rather than decelerating, right now.

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