Beijing—Agencies
Housing prices in China posted their fastest increase in May compared with the same month last year, but the pace of growth slowed on a month-over-month basis, highlighting the central bank’s dilemma as it seeks to balance the need to support the economy with curbing housing price inflation. The average price of new homes in 70 major Chinese cities rose 6 percent year-over-year, having hit a two-year high of 4.9% in April, according to Reuters calculations based on data released today by the National Bureau of Statistics.
The May increase was the fastest since January 2011, when Reuters began tracking the data nationwide. Signs that momentum in the Chinese economy is fading have increased in recent weeks amid data showing weak exports in May and problems hampering domestic activity. The surge in China’s home prices began in the middle of last year, fueling concerns about real estate price inflation. The government launched a series of new measures in March to rein in prices.