Chinese property prices soar

From the AFR:

Prices of newly built Chinese homes rose by as much as 15.5 per cent over the last year, defying government efforts to rein in speculation.

The National Bureau of Statistics said new home prices rose in 65 cities across the country in May from a total of 70 surveyed, as loose credit conditions saw money continue to flood into the sector.

And from ANZ some charts for perspective:

This is not good news. It means further measures to cool the property market and the growing potential of a property market hard landing as China seeks to reign in credit growth even as it aims to rebalance.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.