Chinese house prices rip


Well, Mr Xi, now for the hard part, preventing your countrymen from blowing up the economy. From Reuters:

Average new home prices in China’s 70 major cities in October rose 9.6 percent from a year earlier, a fresh record growth rate, according to Reuters calculations based on official data published on Monday, marking the tenth straight month of year-on-year increases.

In month-on-month terms, prices rose 0.6 percent in October, easing from September’s gains of 0.7 percent.

The National Bureau of Statistics said new home prices in Beijing rose 16.4 percent in October from a year earlier, compared with September’s year-on-year increase of 16 percent.

Shanghai prices were up 17.8 percent in October from a year ago, versus 17 percent annual growth in September.

A nationwide property tax was mooted in the Plenum detail, with no fixed timetable. Chinese markets took the property price news OK as a result.

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.