China property prices recorded the biggest year-on-year increase in nearly five years last month, amid constant fears about a growing bubble in the real estate market, according to the official data released recently.
According to the National Bureau of Statistics, property prices in major cities jumped 12.8 percent on-year in April, making it the biggest year-on-year increase for a month since the survey was widened into 70 Chinese cities in July 2005.
The statistics bureau had collected data on 35 major cities and property prices in both commercial and residential had accelerated from 10.7 percent in February and 11.7 percent in March.
The figure came after a top official said that China’s recent measures to cool down the increasing property prices had been effective and helpful in stabilizing the property market.
“The trend of excessively fast rising residential property prices in some cities has been curbed, sparking a wide, positive response in society,” said Qi Ji, vice-minister of housing and urban-rural development in China.
The Chinese government has issued measures in recent weeks, as they seek appropriate actions to prevent the real estate market from overheating and derailing the third largest economy in the world. Chinese authorities have already tightened restrictions nationwide on advance sales of new property projects, raised minimum down-payments for second homes and introduced new curbs on mortgages for third home purchases.