Chinese house prices continue to rise in August

A model of a luxury property development in Beijing Property is a popular investment choice in China

Related Stories

China property prices continued to rise in August, despite government efforts to cool the market.

Prices for new homes rose in 69 of 70 major cities. It is the fourth month in a row prices have risen in all but one of China's biggest cities.

China has been trying to rein in property prices amid fears that asset bubbles may be forming in the country.

Analysts said the continued price rises could prompt authorities to take steps to reduce speculation in the market.

Zhang Zhiwei, an economist with Japanese bank Nomura, said that he expected the government to start "tightening monetary and property sector policies after the Communist Party meeting in November".

Chinese authorities have already implemented measures, such as higher transaction taxes and down payments, to try to cool demand for real estate.

However, property remains a popular choice among Chinese investors, and their purchases have continued to push prices up.

According to data from China's National Bureau of Statistics, new home prices in the capital Beijing rose 14.9% in August from a year earlier, while Shanghai's prices were up 15.4%.

Mr Zhang said China's new leadership, which took office in March, appeared to have tolerated rising property prices because of concerns about the strength of the economy.

About 25% of overall investment in China goes towards property, making it one of the country's most important growth sectors.

"Now that economic growth has rebounded and looks set to achieve the 7.5% target for 2013, we believe the government's priority may shift toward containing financial risks and property prices," Mr Zhang said.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    ALIBABA SHARE SALE 06:30: Radio 5 live

    "You are getting a taste of the future," says Gordon Barber, from the centre for digital business at the University of Salford on Wake Up to Money. He browses the Alibaba website in his spare time. He says it can give an insight into where high street technology products will be in one or two years time.

     
  2.  
    ALIBABA SHARE SALE 06:16: Radio 5 live

    "Investors are punch drunk with new issues," says Justin Urquhart Stewart, co-founder and senior partner of Seven Investment Management on Wake Up to Money. He says that recent shares sales have been "overpriced" and "oversold". He adds investors want to wait until shares settle down before investing in firms like Alibaba.

     
  3.  
    ALIBABA SHARE SALE 06:10: Radio 5 live
    Alibaba HQ

    The BBC's Ali Moore in Singapore explains the extent of Alibaba on Wake Up to Money. It owns China's biggest online shopping site. It has an online payment system. It owns 35% of a department store chain and it wants a banking licence. But she says the firm does not face massive competition in its home market, so it's not clear how it will do outside China. Its shares are expected to be priced after the US markets close on Thursday.

     
  4.  
    PHONES 4U RESCUE 06:02: Radio 5 live
    Phones 4U store

    Bondholders "were extremely angry over what happened," says Justin Urquhart Stewart, co-founder of Seven Investment Management Wake Up to Money. He's referring to the collapse of Phones 4U. Its private equity owners took more than £200m out of the firm by loading it with debt. Now those holders of debt are offering to take a loss to keep the business going.

     
  5.  
    06:01: Matthew West Business Reporter

    Morning folks. As always feel free to get in touch either on email bizlivepage@bbc.co.uk or on twitter @bbcbusiness.

     
  6.  
    06:00: Ben Morris Business Reporter

    A group of Phones 4U creditors are offering a deal to help revive the firm, and find out why you should care about Alibaba. Stay with the Business live page.

     

Features

From BBC Capital

Programmes

  • Cinema audienceClick Watch

    Brighter 3D films - the new laser-based system promising to deliver crisper, clearer movies

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.