Fresh surges in Chinese house prices could usher in a new round of curbs
Shanghai — There’s no stopping China’s property market. Prices of new homes rose at the fastest price in 22 months in July, climbing 1.2% from the previous month. That is according to Bloomberg calculations based on statistics bureau data for 70 cities released on Wednesday. It was the fifth straight monthly acceleration. The jump in values in third-tier cities was the biggest in data going back to 2009, signalling the potential for the government to roll out more housing curbs in a cooling campaign that began more than two years ago. The dilemma for officials is how to restrain prices without tanking the property sector during a broader economic slowdown.
"A persistently high home price is going to lead to a very strong response from the government," Phillip Zhong, a Hong Kong-based equity analyst at Morningstar Investment Management Asia, said on Bloomberg Television. "We are going to expect to see more tightening measures being put in place." Values climbed 1.2% in third-ti...
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