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China's big-city property boom resists slow-down efforts
CHINA'S attempts to rein in property speculation may be faltering as sales surge and prices rise in some cities.
In Shenzhen, housing transactions leapt 84 per cent from July to August, said real estate data provider Soufun Holdings. Sales rose 56 per cent in Guangzhou, 31 per cent in Shanghai and 23 per cent in Beijing, it said.
Premier Wen Jiabao is trying to prevent a property boom turning to bust after banks flooded the economy with money to drive the nation's recovery. Citigroup said yesterday that more tightening measures were likely and could include restrictions on pre-sales of apartments and on the discounts banks can offer on mortgages.
''The key drivers of the property bubble are excess liquidity and lack of investment alternatives, which are still largely in place,'' said Ken Peng, an economist for Citigroup.
Prices are rising with sales. Soufun's data showed a 12.3 per cent monthly rise for Beijing homes in August, almost 7 per cent in Shenzhen and 6.6 per cent in Guangzhou. The Beijing data excluded welfare housing, which is included in government figures.
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