BEIJING, June 1 (Reuters) - New home prices in China rose in
May, extending the uptrend for a third month with the heat
spreading to more cities as developers made faster sales, a
private survey showed on Tuesday.
New home prices in 100 cities rose 0.34% in May from a month
earlier, quickening slightly from 0.23% in April, according to
data from China Index Academy, one of the country's largest
independent real estate research firms.
The number of cities that reported monthly price rises
picked up to 80 in May from 77 in April, with small cities in
the Yangtze River Delta showing the greatest strength.
"The volume of new residential home projects supplied by
developers remained elevated in May," said China Index Academy
Research Director Cao Jingjing.
Cao added property owners looking it buy a larger home have
led demand for new projects, fuelling price gains.
Prices of second-hand homes rose 0.5% in May from previous
month, unchanged from the pace in April. Existing home prices in
tier-1 cities ticked up 0.95% on-month in May, with the pace
more than doubling the average growth in other lower tier
Separatelya private survey published on Tuesday showed that
China's average home rental prices in large and medium-sized
cities in May rose 0.78% month-on-month, the biggest increase
since January 2019.
Against a year ago, rents fell 0.61% in May, the smallest
decline since May 2020, as a vast number of college graduates
led to a surge in rental demand, the Chinese property data
provider Zhuge House Hunter said.
Chinese authorities have since this year intensified their
campaign to rein in the relentless rise in home prices and drive
speculators out of the market. Local policies include capping
prices set by developers and preventing some real estate
agencies from setting excessively high second-hand home prices.
Banks in major cities also hiked mortgage rates.
Transactions in 18 major cities tracked by the institute
remained flat in May compared with April, with tier-1 cities
logging 20% drop while tier-3 towns seeing 33% rise.
Land sales by volume in 300 cities fell 12% in May from
April, and declined 19% on an annual basis, CIA data showed.
(Reporting by Lusha Zhang and Tony Munroe; Additional reporting
by Liangping Gao; Editing by Simon Cameron-Moore)