House price in China edged up again in February and at faster pace this time around, with more than 65% of the cities reporting a price rise. According to the survey, 47 of the 70 large cities surveyed, reported increased price (m/m) for new house sales. In January, it was 38, so it would be fair to say price rise is growing broad based. Moreover 15 cities reported decline in prices from January, compared to 24 prior. Yearly data is bright too. On yearly basis 32 cities reported price increase compared to 25 in January. Moreover only 37 reported drop compared to 45 in January.

Biggest price increase was registered Shenzhen, up 57.8% from a year ago, followed by Shanghai and Beijing, where price rise by 25.1% y/y and 14.2% y/y respectively. Steepest decline was registered in Dandong, price drop of 3.9%. Over prices are up 3.6% in February from a year ago.

Since last year, government and People’s Bank of China (PBoC) have announced number of measures, such as reduction in down payment ratio, slashing property taxes to boost housing market, it may be bearing fruits now. PBoC’s easing might also be playing a role here.

However extreme price rise in Tier I cities like Shanghai, Shenzhen is of extreme concern. Concerns are rising over bubble in the market as speculative forces and large money chase investment after big stock market crash last year.