New home prices in 36 medium- and large-sized Chinese cities rose 6.3 percent in June from a year earlier as bank lending tripled in the first half.
The average price of new homes rose to 6,554 yuan ($959) per square meter, the National Development and Reform Commission said on its Web site today. New home prices in June rose 1.1 percent from May, China’s top economic planning agency said.
The increase in new bank loans to 7.37 trillion yuan in the first half helped spur demand for property and boosted prices, said Bohai Securities Co. analyst Zhou Hu. Housing prices in 70 major Chinese cities rose in June for the first time in seven months, the government said July 10.
“China’s property market is recovering and prices should continue to rise in the third quarter,” said Zhou, who recommends buying shares of China Vanke Co. and Poly Real Estate Group Co., the country’s biggest developers by market value.
Read the full article “China’s New Home Prices Rise as Bank Lending Triples” in Bloomberg (July 20, 2009).