China’s Property Prices Rose in Almost All Cities

According to a monthly survey, prices of new apartments rose in May in 67 of 70 Chinese cities, reported Saturday the National Bureau of Statistics (NBS), while the government has difficulty controlling the inflation.

The price increase is greater than 5% in 33 of these cities, four less than in April, according to official figures.

Soaring real estate prices is a concern for many Chinese. The purchase of property has become an ideal investment for the middle class and the center of large cities are out of reach of most people.

The real estate sector is one of the pillars of the Chinese economy and land sales to developers have become an important source of revenue for municipalities.

Beijing called local governments to build more social housing but local governments fear the reduction of income if they sell their land at low prices.

In order to fight against inflation, the Chinese central bank noted Tuesday for the sixth time this year the bank reserve requirements, limiting the amount of money they can lend.

In May, before this latest increase, the volume of new loans was sharply down compared to April.

The index of consumer prices reached 5.5% last month, its highest level since July 2008.