Rising Chinese Property Prices Hint PBOC Stimulus Working
- New Home Prices rose in 39 of 70 Chinese cities in December vs 33 in November
- Prices rose 8.3% and 15.5% year-over-year in Beijing and Shanghai, respectively
- Financial markets worry that Chinese housing stimulus may stoke speculative bubble
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New Home Prices rose 0.4% (MoM) in Beijing and 1.9% in Shanghai in December. The yearly changes for the same cities were 8.3% and 15.5%, respectively. Out of the 70 cities monitored, 39 saw real estate price inflation on a monthly basis as opposed to the 33 cites in November.
China has taken accommodative policy measures to stoke growth in its housing market. The financial news outlets have expressed concern that the Asian government should be cautious with its stimulus so that it does not create a speculative housing bubble.
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