China's home prices rose 6.2 per cent in April, accelerating from the previous month's 4.9 per cent gain, an official survey showed on Wednesday (May 18), marking a broadening recovery in the country's housing market. According to a Bloomberg calculation, house prices in the city of Hefei, located in the Anhui province, rose 5.7 percent over the past month - the fastest among the 70 cities tracked.
China's housing market started to recover in the second half of 2015 after cooling for more than a year, boosted by government support measures, including interest rate cuts and lower deposit requirements.
"Growth in first and second-tier cities continued to accelerate, while third-tier cities reversed declines to post growth", Liu Jianwei, a senior statistician at NBS, told Reuters. Home prices in Shenzhen, for instance, are on average 63.4% higher than a year ago.
On a yearly basis, 46 cities posted new-home price increases and 23 reported falls in April, compared with 40 and 29 in March, according to the NBS.
Prices in Shanghai, Nanjing, Xiamen and Beijing also surged, up 34.2 percent, 22.6 percent, 21.7 percent and 20.2 percent year on year, respectively.
Compared with March, however, price gains slowed, suggesting recent tightening policies might be gaining traction, with Shenzhen growth easing to 2.3 per cent from 3.7 per cent, while Shanghai growth slowed to 3.1 per cent from 3.6 per cent.