BEIJING: China’s housing prices rose in January for the first time in nine months, a survey showed on Saturday, breaking a decline that has weighed on growth in the world’s second-largest economy.

The average price of a new home in China’s 100 major cities rose 0.21 per cent from December to 10,564 yuan ($1,690) per square metre, according to the independent China Index Academy, the first rise since April 2014.

The figure represents a turnaround from December’s 0.44pc decline, according to academy data.

On a year-on-year basis, however, prices were down 3.09pc in January, greater than the 2.69pc recorded last month, the statement said.

“Overall, with the real estate market expected to continue its turn for the better, prices in the 100 cities stabilised in the first month of the new year,” said the statement.

“This month, prises have clearly risen in an increasing number of cities, including all of the first-tier cities,” it added. The average price in the top 10 cities grew to 18,990 yuan per square metre, down 1.23pc from a year ago, the statement said.

As in December, Beijing, Shanghai and the southern boom town of Shenzhen were the only three top 10 cities to see annual price rises, it said, with Shanghai the best performer with a 1.92pc increase to 32,278 yuan per square metre.

Prices in the eastern city of Hangzhou, meanwhile, declined 10.95pc from last year to 16,215 yuan per square metre.

China has previously sought to rein in runaway property prices, a source of discontent among ordinary citizens, by introducing market control measures including limits on buying second and third homes.

Published in Dawn, February 1st, 2015

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