China's new home prices accelerate in February

New home prices in China rose at their fastest pace in five months in February, official data showed on Monday, as red-hot demand for property in the world's-second largest economy largely eclipsed government efforts to cool the market.To get more news about China property market 2021, you can visit shine news official website.

Monthly house price gains were reported by the highest number of cities since August, while separate data showed property investment soared in the first two months of 2021. It comes as China has vowed to stick to its "houses are not for speculation" policy.

Average new home prices in 70 major cities grew 0.4% in February from a 0.3% gain in January, according to Reuters calculations based on data released by the National Bureau of Statistics. New home prices rose 4.3% in February from a low base last year, after a 3.9% increase in January.

Real estate, a key pillar of China's economy, has helped fuel the country's robust economic recovery from last year's coronavirus-hit to output.

But an extended surge in home prices in recent months has raised concerns about speculative asset bubbles, prompting tighter regulations to close loopholes in home transactions and contain illegal fund-flows into the sector.

"Although the various regulatory debt curbs are expected to impact land acquisition by developers, investment was underpinned by the control of coronavirus epidemic and overall improving macro economy," said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution.

China's real estate investment jumped 38.3% in the first two months of the year, from a low base a year earlier, separate NBS data showed on Monday. It was up 15.7% from same period in 2019, before the pandemic struck.The NBS combines January and February data to account for the seasonal distortions from the week-long Lunar New Year holiday, which can fall in either month.