BEIJING, Feb 1 (Reuters) – New home prices in China rose at a slightly faster pace in January, with markets in the eastern and southern coastal regions remaining firm as prices in the north declined, a private survey showed on Monday.<\/p>\n
New home prices in 100 cities rose 0.37% in January from a month earlier versus a 0.25% gain in December, according to data from China Index Academy (CIA), one of the country\u2019s largest independent real estate research firms.<\/p>\n
On an annual basis, new home prices rose 3.56% last month, slightly outpacing December\u2019s 3.46% gain.<\/p>\n
The price rises continued to be led by cities in the southern Pearl River Delta and eastern Yangtze River Delta, while prices of new homes in the Beijing-Tianjin-Hebei region eased.<\/p>\n
\u201cIn some cities severely affected by the COVID-19 epidemic, some projects were put on sale, thus new home prices dipped marginally,\u201d said CIA Research Director Cao Jingjing.<\/p>\n
Fewer cities reported monthly gains, with the number falling to 64 from 79 in December, and 34 cities posted lower home prices, compared with 19 in the preceding month.<\/p>\n
China\u2019s property market recovered quickly from the COVID-19 crisis last year, mostly in bigger cities. But rising prices have prompted top-tier cities including Beijing, Shanghai and Shenzhen to ramp up regulations on home transactions and the flow of funds into the sector.<\/p>\n
Land sales by volume in 40 major cities fell 68% in January from December, and only rose 1% on an annual basis, separate CIA data showed.<\/p>\n
To help curb the coronavirus, China has urged people not to travel during this month\u2019s Lunar New Year holidays, a time when many people return to their provinces to buy homes. Cao said this could lead to more buying in the cities where people work.<\/p>\n
Bigger cities may therefore see further upside in home prices, which could lead to more policy tightening, Cao said.<\/p>\n
A Reuters poll released on Monday found China\u2019s home prices are expected to rise at a slower pace this year, while sales will likely be flat.<\/p>\n