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Property prices increase for four consecutive months

By Hou Lei (chinadaily.com.cn)
Updated: 2009-07-10 17:23

Property prices in 70 major Chinese cities increased by 0.2 percent in June from a year earlier, the National Development and Reform Commission (NDRC) said Friday.

Housing costs in large and medium-sized cities witnessed a month-on-month increase of 0.8 percent in June, with a steady increase for four consecutive months, it said.

The month-on-month increase in Beijing was 0.4 percent, however, property prices in the capital remained 0.7 percent lower than the same period last year.

Related readings:  Property developers trigger decline in shares  Property firms eyeing overseas realty buys  Property transactions up 20% in June  Recovery on as property sales surge  Urban home buyers wait for property market to stabilize

In the first five months, both property prices and sales of commodity housing increased in Beijing. Besides, 97,192 units of second-hand houses were sold in the capital from January to June 25, more than the whole of 2007.

Average price of commodity houses in Beijing in June stood at 13,302 yuan (US$1,950) per sq m, up by 27 percent since January.

It is believed that those consumers who buy houses to meet their basic needs may wait because of the current rise of prices.

The exorbitant home prices may also lead to policy adjustment of central government due to its worry for realty bubble.