For first-tier cities including Beijing, Shanghai, Guangzhou and Shenzhen, the rate of first home loans were in the range of 5.09% to 5.57%. Photo: iStock

China is unlikely to relax stringent regulations governing the property market, as the latest data shows that housing prices in large and medium-sized cities in December had risen nearly 10% from a year earlier, Investor China reported.

Seventy large and medium-sized cities saw a 9.7% year-on-year increase in home sale prices in December, compared to a 9.3% gain in November, data released by the Nation Bureau of Statistics on Wednesday showed. On a monthly basis, the price grew by 0.8%.

“The home price is still increasing more than expected amid the downward pressure on the economy,” said Zheng Huaiwu, a real estate research head at a broker affiliated with CIMB. “There is no reason for the government to say it supports the development of the real estate industry.”

Zheng also said some cities may relax housing regulations marginally, but they are unlikely to be loosened nationwide.

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