China new home prices rise 0.6 pct in March, despite tough measures by authorities

Data released by China’s National Bureau of Statistics (NBS) earlier today showed China's new home prices rose by 0.6 percent in March, double the 0.3 percent increase seen in the previous month. The annual increase slowed to 11.3 percent, down from 11.8 percent in February.

Since October last year, the Chinese government has implemented a slew of measures to cool fast growth in housing prices, including restrictions on home purchases and increased minimum down-payment requirements. The stabilization in prices will likely be a headache for policymakers.

Chinese property investment, which includes residential, commercial and office investment, grew by 9.1 percent year-on-year in the first quarter of 2017, up from 8.9 percent in the first two months of the year. From a year earlier, the NBS said that prices rose by 19 percent in Beijing and 16.8 percent in Shanghai, slowing from the 22.1 percent and 21.1 percent increases reported in the year to February.

Data showed that concerns over a potential housing bubble, and with it heightened financial stability risks, continues to increase. However, despite signs to the contrary, some policymakers remain confident that housing market conditions will eventually slow.