Two-thirds of china cities see house prices increase

Photo credit: Stefano Mara

House prices in almost two-thirds of Chinese cities increased in August, according to the latest figures.

Values edged up by 0.24 per cent from July to 8,738 yuan per square metre in over 60 per cent of cities, the China Index Academy report revealed. That follows an increase of 0.33 per cent in July to make the third month in a row of rising prices.

Prices increased in 63 cities, down from 70 in July, led by Yangzhou, where prices jumped by 2.03 per cent. 10 metropolises saw values rise by over 1 per cent in August, while 37 cities reported falling prices.

Despite the monthly growth, though, prices remain lower than last year, adds the Shanghai Daily. Compared to August 2011, prices across the 100 cities fell by an average of 1.6 per cent.

"Property transaction around the country remained stable last month and repeated government vows to maintain housing curbs and prevent a price rebound seemed effective to slow the growth," commented the academy.

according to new figures. Dubai's Downtown and Old Town areas both saw rents increase, but Downtown is leading the way in tenant demand.

A major factor is the quality of the newer buildings. The high-rise towers in Downtown offer more amenities and a nicer view, giving better value for money, argue agents.

"Downtown buildings like Burj Views, Residences, South Ridge have squash courts, basketball courts, gym, play areas, pool, etc," Legacy Real Estate told Emirates 24/7. "On the other hand, Old Town just provides residents with a swimming pool. It does lack in amenities."

Still, the Old Town remains popular with those who prefer low-rise structures. And that interest has boosted rents in each location by 8-10 per cent. Some agents place that rent increase closer to 20, or even 30, per cent.

One-bedroom units in Downtown now rent for around Dh75,000-85,000 with rates going up to Dh200,000 for three-bedroom properties.