New Home Prices Still Soaring in April

CREIS records a 1.45 percent increase in April, following the 1.90 percent increase in March. The big difference was the diffusion: last month the top 10 cities' home prices increased 2.52 percent, well ahead of the 100-city survey. In April, prices in the top 10 cities climbed 1.53 percent, in line with the national figure.

Speculative fever shifted out of the first-tier: Huizhou in Guangdong saw prices rise 6.30 percent, up from 6.05 percent last month.

Huizhou is east of Shenzhen and benefiting from the explosion in Shenzhen home prices. It's also a tourist area with lots of waterfront property. From 2014: Huizhou, Zhuhai Become Ghost Towns; Tourist Areas Hit Hard By Real Estate Slump

As with the 2015 stock market rally, if this rise in home prices is sustainable, it points to much higher inflation. The pace of the price rise is not supported by economic growth or real wage growth.

100-City Survey: 2016年4月百城价格指数
Google Translated: April 2016 100 city price index

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