China new home prices rise to record-high in September, despite tougher curbs

New home prices in China rose to record high during the month of September as buyers remained in a rush to beat the tougher property curbs imposed by the Chinese governments; also, sale of new properties surged as buyers wanted to close pending contracts before new regulations take effect.

New-home prices, excluding government-subsidized housing, gained last month in 63 of the 70 cities the government tracks, down from 64 in August, data released by the National Bureau of Statistics showed Friday. Prices dropped in six cities, compared with four a month earlier. They were unchanged in one.

Average new home prices in China's 70 major cities rose 11.2 percent in September from a year earlier, accelerating from a 9.2 percent increase in August. Second-tier cities recorded the highest year-on-year price growth in September again; the coastal city of Xiamen in southeastern China, the top performer in August, registered a record price rise of 46.5 percent, accelerating from 43.8 percent in the previous month, the data showed.

Further, Beijing and Shanghai prices rose 27.8 percent and 32.7 percent on-year, quickening from 23.5 percent and 31.2 percent in August. Price growth in Shenzhen, fell slightly to 34.1 percent from 36.8 percent in the previous month.

In addition, prices in Hefei grew only 1 percent in the first half of October, compared to the last month, slowing significantly from a 4.6 percent rise in September. However, prices in the financial hub of Shanghai fell 2.5 percent in the first two weeks of October, after jumping 3.2 percent in September.

"These curbs only aim to rein in the home-buying panic and to stem the bubble, instead of being an all-round shackling on the property market," Bloomberg reported, citing Wang Tao, Chief China Economist, UBS Group AG in Hong Kong.