China's new home prices still rising

Prices of new commercial homes in 36 major cities in China continued to increase month-on-month in May in spite of government’s effort to cool the real estate market, according to the National Development and Reform Commission (NDRC).

Average new commercial home prices in 36 major Chinese cities hit 8,479 yuan (S$1,719) psm in May, an increase of 0.81 percent from April, said NDRC.

However, the growth rate last month in these cities was 2.65 percent lower compared with the April figure.
 
Home prices in 70 medium- and large-sized cities increased 12.4 percent year-on-year last month, according to figures from the National Bureau of Statistics.

In an attempt to control home prices, the Chinese government has limited loans for third-home purchases, tightened scrutiny of property developers' financing, tightened down-payment requirements for second-home purchases and increased minimum mortgage rates.