Reed Cavendish Wealth Management - China's Property Prices Rise

Reed Cavendish Wealth Management - China's smaller cities attract more new investment in property market.

Analysts at Taipei, Taiwan-based investment house, Reed Cavendish Wealth Management, say the prices of new homes in China increased last month with several smaller metropolises fueling overall price growth, aided by a government measure that enabled purchasers to navigate regulatory hurdles in those locations.

The National Bureau of Statistics reported that new home prices in China’s 70 main cities increased by 0.5 percent last month, up 0.1 percent from the month before.

Reed Cavendish Wealth Management analysts say that, on a yearly basis, property prices increased 4.7 percent last month, a slight decline from 4.9 percent annual growth in March.

The majority of the 70 cities reported an increase in property prices last month and Reed Cavendish Wealth Management analysts believe this could indicate wider market strength.

Reed Cavendish Wealth Management analysts say a large number of home buyers are looking to take advantage of the more lenient regulations seen in smaller cities where property is more affordable. New government policies that enable university graduates to bypass buying restrictions in some provincial capitals have also fueled investment.

According to the data released by the National Bureau of Statistics, price growth in many of China’s larger provincial capitals has increased by 0.2 percent in April and accelerated by 0.1 percent in its smaller third-tier cities.

Reed Cavendish Wealth Management analysts believe certain economic and political developments can also be credited with attracting new investors to smaller cities and away from the once-more popular larger centers.

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Source: Reed Cavendish