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China home prices to help exports: report

Wood Markets’ latest “China Bulletin” says China’s home prices have gradually risen over the second half of 2012, particularly in the largest cities. However, continued property purchase controls and a rising inventory of newly-completed government-subsidized affordable housing units are expected to dampen the upward pressure on prices.

The report says following a slowdown starting in the fourth quarter of 2011 and for much of 2012, the Chinese property market has shown signs of warming in recent months. Much of this increase has been attributed to the Chinese central bank twice cutting interest rates, as well as the bank’s required reserve ratio earlier this year in an effort to buoy the economy.

“China’s home prices recorded their first year-on-year increase in nine months in December 2012,” staged the report. “Figures show the price of both new homes and pre-owned homes in the 10 key cities increased at a quicker pace than the national average, indicating the market rebound was mainly recorded in major cities.”

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