Two new surveys have shown that house prices in China during August increased faster than they did in July.
According to worldpropertychannel.com, a survey from E-House showed that house prices in 288 cities rose by 1.1 per cent in August and the China Real Estate Index System (CREIS) reported that prices in 100 cities had increased by 0.92 per cent, resulting in an increase of 8.6 per cent compared to last year.
The rise in house prices has been positive for fuelling the economy in China, which is the second-largest in the world, as its export activity is actually slowing down.
CREIS says that land prices are continuing to rise in the country, which pushed house prices up, reports reuters.com. It also reports that the number of buyers entering the market has been spurred by some local governments relaxing home buying restrictions, enabling more people to buy.
Homes on sale in cities such as Beijing and Shanghai are in demand the most, as they saw house prices rise by 1.5 per cent last month.
Chief analyst at Shanghai Uwin Real Estate Information Services Co., Huang Zhijan, commented: "It's increasingly less likely that we'll see new tightening measures in the property market, and investors and homebuyers are returning to the market and pushing up prices because of the limited supply."