China’s home prices rose at the fastest rate on record in September as buyers rushed to close contracts before new restrictive measures took effect in October, suggesting this month’s growth might be more muted.
Average new home prices in China’s 70 major cities rose 11.2 percent in September from a year earlier, accelerating from a 9.2 percent increase in August, a National Bureau of Statistics survey showed on Friday.
Second-tier cities recorded the highest year-on-year price growth in September again, as sharp price rises have spilled over to other parts of the country.
Hefei, capital city of Anhui province in central China, was the top performer in the price rally, with prices surging 46.8 percent from a year earlier, quicker than the 40.3 percent rise in August.
The coastal city of Xiamen in southeastern China, the top performer in August, registered a record price rise of 46.5 percent, accelerating from 43.8 percent in the previous month.
The property market, accounting for around 15 percent of gross domestic product, has become a major driver of economic growth this year, as booming construction, sales and prices contributed to third quarter economic expansion of 6.7 percent, offsetting a slump in exports and private investment.