A new bubble on Chinese real estate market worries the Beijing authorities. According to the Chinese National Bureau of Statistics, in fact, the price of houses in the 70 major cities of the country would have experienced an increase of 7,5% on an annual basis in August, after +6,3% in July. On a monthly basis, prices grew by 1,3%.
House prices increased in 62 of the 70 cities surveyed, up from 58 in July. Growth rates of over 20% were recorded in the major metropolitan cities of the country: +25,8% in Beijing, +37,8% in Shanghai and +37,3% in Shenzhen.
This new real estate bubble has already pushed the chief economist of the Central Bank of China, But Jun, to ask for the introduction of measures to curb it, drawing attention to the growing risks attributable to excess credit disbursed in favor of the real estate sector.
