Home prices in major Chinese cities have gone up in March, showing a recovery in the property market, official data showed on Saturday.
64 of the 70 large and medium sized cities showed month-on-month inclines in house prices, while 57 cities showed higher resale house prices, National Bureau of Statistics revealed.
New home prices in China’s four biggest cities; Beijing, Shanghai, Shenzhen and Guangzhou, increased by 0.3 percent in March, while prices of new houses in 31 second tier cities increased by 0.4 percent. Prices of new houses in 35 third tier cities increased by 0.3 percent.
“The rebound came as government policies to stabilize the property market took effect gradually, and people’s rigid housing demand and demand for housing improvement were further satisfied,” said Xu Xiaole, a senior analyst with China’s real estate brokerage platform, Beike.
The real estate sector, along with the construction industry have contributed with 13 percent of China’s gross domestic product (GDP).
Chinese policymakers have provided the industry with incentives, including encouraging commercial banks to give loans to fund real estate projects and allowing cities to adjust the lower limit for first house mortgage rates.
“I have full confidence in the steady recovery of China’s property market during the country’s two sessions in March,” said Ni Hong, the Chinese minister of housing and urban-rural development.
The government has pledged preventing unregulated expansion in the real estate market and promoting stable development.
