China's property market continued to recover in March, with most of surveyed major cities reporting month-on-month rises in new home prices.
62 of the 70 large and medium-sized cities surveyed saw new home prices surge month on month, up from 47 in the previous month.
Meanwhile, eight cities reported month-on-month price declines, down from 15 in February.
On a yearly basis, 40 cities posted new-home price increases and 29 reported falls in March, compared with 32 and 37 in February.
New-home prices in Shenzhen soared 62.5 percent year on year. That was the sharpest increase last month among all the major cities, followed by Shanghai, Nanjing and Beijing.
Prices are soaring even though new housing policies in the cities have been implemented. As the reporter finds out, the price could be much higher if there's no policy at all.
Early this year, Mr. Peng decided he wanted to invest in a big apartment.So he sold one of two smaller apartments that he already owned. But the government implemented its new housing policy before he could settle on his new home.
The new regulations require Mr. Peng to pay a 70% down payment for a new apartment bigger than 120 square meters, instead of 40% like before. The new loan rate is 110% of the base rate. So it will now take longer to save up for a new home.But Mr. Peng is still eager to buy, while some are getting eager to sell before the market price goes down further.
Property developers have started adjusting their sales strategies to fit with the new laws.
On April 17th, property prices in Shanghai averaged 29,912 yuan -- 13% lower than March 25th. Also, the trading volume is 392 sets, only one third of the number on March 25.
The new policies are expected to cool the market down further, reduce speculative buying, and bring the property market back on a stable development path.