While Australian property prices have stagnated in recent times, property prices in China are continuing to rise.
According to the latest research out of China, residential prices in 70 large and medium-sized cities rose on average of 5.6% in the year to January.
The figures released on Friday by the National Development and Reform Commission confirmed that prices in the secondary housing market were up 5.3% during the same period.
The Chinese government in a bid to cool property prices have issued an official mandate for developers to build more smaller houses and have put a levy more value-added tax on developers.
Chinese government’s tax authorities have begun enforcing land tax on developers, which will severely hit their net incomes on each real estate project depending the profits achieved.
Meanwhile, “commercial” residential property is experiencing a major boom with the Shenzhen province ranked first with a price hike of 10.2% over the past 12 months.
The NDRC also said that “commercial” residential prices in Beijing have jumped 9.9% in one year. Fuzhou and Guangzhou provinces also saw major growth in commercial property prices over the past 12 months.
Price of second-hand residential houses in the 70 cities rose by 5.3% year on year, 1.1% higher than the previous month. Price of “commercial” houses grew by 4.5%, up 0.1% on the previous month.
Australian Property Journal
