China's home prices may rise further in 2013
Updated: 2013-01-29 17:34
By Hu Yuanyuan (chinadaily.com.cn)
China's property prices will continue to rise in 2013, driven by less supply, faster urbanization and the improved economy, analysts said.
Housing inventories this year will be lower than in 2012, due to a slide in new construction area since the third quarter of 2011, data from a report by Reico showed on Tuesday.
Reico is a research institution affiliated with the China Real Estate Chamber of Commerce.
"The country's property prices will pick up steadily this year, but a strong rebound across the country is not likely given the continuing rigorous measures," said the report.
Property prices in the majority of China's 70 major cities have reversed their downward trend since November 2012.
Prices in 29 cities increased mildly in November and in 44 cities in December, versus 14 cities in October, signaling that prices have bottomed out, according to the National Bureau of Statistics.
Moody's Investors Service, though expecting a growth in the contract sales of most of mainland property companies in the first quarter of 2013, said it does not expect prices to increase sharply across the board in the near-to-medium term.
Among the 44 cities where prices have risen, none has recorded growth of more than 5 percent year-on-year.
"In addition, developers continue to focus on mass-market housing, which entails lower average selling prices, rather than on luxury homes. The increased proportion of mass-market housing will also restrict the increase in prices," Moody's said in a report.