More cash needed to buy a house in January

HOME prices in China rose faster in January than in December, with nearly two-thirds of the cities monitored seeing gains.

The average price of new residential properties across 100 major cities rose 1 percent from a month earlier to 9,812 yuan (US$1,557) per square meter, the China Index Academy said yesterday. That compared with December's 0.23 percent increase.

Thirty-eight of the 64 cities that posted gains saw an increase of more than 1 percent. In December, 57 cities posted gains, with 26 recording a rise of more than 1 percent.

Quanzhou in the coastal Fujian Province led January's gainers with a 3.96 percent rise.

Thirty-five cities reported price drops, with 21 suffering a fall of more than 1 percent.

"Major cities, led by first-tier ones as well as those along the eastern coast, recorded accelerated price increases in January and that was the main reason behind a much faster pace registered all over the country," the academy's report said. "Moreover, continuously improving sales over recent months, coupled with repeated vows made by the government to support demand from end-users, also helped boost confidence among real estate developers who have become more inclined to launch high-end products to the market."

Average growth

The average price for a new home in China's 10 largest cities jumped 1.61 percent from December to 16,417 yuan per square meter, with Shanghai, Beijing, Guangzhou and Shenzhen all seeing gains over 2 percent.

Meanwhile, data from Shanghai Uwin Real Estate Information Services Co showed new home transactions staying above 1 million square meters in Shanghai for the second straight month while average prices rose 5.1 percent from December to 23,070 yuan per square meter, the highest in six months.

New residential properties costing under 25,000 yuan a square meter accounted for 69 percent of new home sales in the city in January, compared with 71 percent in December. Those costing more than 40,000 yuan per square meter took a 10.8 percent share last month, up from 7.7 percent in December, Uwin said.

A project in Houkou District was top seller with 321 apartments fetching an average 44,388 yuan per square meter.

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