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Chinese cities see sharp hike in home prices


China home prices rose last month in more cities despite increased restrictions on property transactions by local authorities, according to a report.

New home prices, excluding subsidized housing, gained in February in 56 out of 70 cities tracked by the government, compared with 45 in January, reported Bloomberg, citing the National Bureau of Statistics.

Prices climbed in 67 out of 70 cities from a year earlier, compared with 66 in January, it stated.

To cool the market, Beijing city on Friday raised down-payment requirements for second homes 10 percentage points to between 60 per cent and 80 per cent.

The rule also applied to buyers who don’t currently own a home but previously had a mortgage with the same down-payment threshold, making it harder for someone to sell their house to upgrade to a bigger or more expensive property, said the report.

China’s biggest cities have seen a round of home price surges in the past year.

In Beijing, new home prices rose 24 per cent in February from a year earlier, while Shanghai saw a 25 percent gain. Shenzhen prices increased 14 per cent in the same period, it added.

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