China home prices rise further in August, testing govt
BEIJING (REUTERS) - China's new home prices rose at the fastest rate in at least 2-1/2 years in August, with some large cities rising around double the national pace, complicating government efforts to keep prices in check while supporting one of the stronger areas of the economy.
The government has tried to control property prices, wary of a potential bubble and the possibility of unrest if people are priced out of the market, but cannot push too hard as a strong property market has helped offset a general economic slowdown.
"We think the government is likely keep property policy stable as the mild recovery of the broader economy is not so stable yet," said Jinsong Du, property analyst at Credit Suisse in Hong Kong.
Average new home prices in China's 70 major cities rose 8.3 per cent from a year earlier, according to Reuters calculations based on data published by the National Bureau of Statistics.