There is only one way to fix the problem and that is to Build more housing Now! 1
Average month-on-month new home prices across the nation's 70 major cities skyrocketed in February, official data released Monday showed, intensifying pressure on China's newly elected government to rein in the property sector.
Of the 70 large- and medium-sized cities surveyed by the National Bureau of Statistics, 66 saw an increase in new home prices in February over the previous month, with Guangzhou registering the sharpest growth rate of 3.1 percent, the bureau said Monday. In January, month-on-month prices jumped in 53 cities.
February's surge in new home prices is even starker based on year-on-year figures, with 62 cities reporting a price jump compared to the same month last year. Guangzhou prices surged the most among 70 cities, advancing 8.1 percent from a year earlier. Beijing prices placed second by climbing 5.9 percent.
February's data marked the second consecutive month of year-on-year increases, according to Reuters' calculations based on official figures, and the seventh consecutive month of price hikes in month-on-month terms.
Sharp growth momentum in February surpassed what had been seen in 2009, when the property market was at its most heated, signaling panic among homebuyers in big cities, Zhang Dawei, research director at the Beijing office of Centaline China Real Estate, said in a research note e-mailed to the Global Times on Monday.
Forecasting growth momentum to continue in March, Zhang noted a more moderate pricing increase is expected in April due to the implementation of a raft of new housing controls.
To combat rapidly-rising housing prices, the government announced five general curbing principles in February, which was further clarified early this month. They consist of a slew of tougher measures, including imposing a hefty 20 percent capital gains tax on second homes and raising down payment rates and loan interest rates in cities with excessive price gains.
"We have observed little effect of the policy details thus far," Yao Wei,