China property prices ease in May

| June 20, 2011 | 0 Comments

Official figures today revealed China house prices slowed in May, suggesting the Government’s attempts to cool house prices is taking effect.

The Government has launched several initiatives to avoid a property bubble. It recently announced plans to introduce a property tax, while making it more expensive to buy second homes, by lifting the minimum down payment.

Data released today showed fewer Chinese cities reporting price increases on a monthly basis in May.

Existing home prices in Beijing fell 0.2% in April on the previous month, while Shanghai saw an increase of 0.2%, slowing from the 0.3% rise noted in April.

The price of new homes (generally sold by developers) increased last month in 67 of the 70 cities monitored.

However, of the cities, 27 showed a weakening in the pace of growth, the National Bureau of Statistics said.

Furthermore, a total of 29 cities posted increases higher than 5% - but this was down from the 33 cities in April, said the Bureau.

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