China house prices up 1.5% or 25% in 2009 according to source

According to statistics released by the China Land Survey and Planning Institution, house prices in China increased 25 per cent in 2009, the biggest increase since 2001.

However, data from the National Bureau of Statistics suggest house prices only rose 1.5 per cent in 2009, a five year low.

While both indexes use different methods and data sources, the National Bureau of Statistics is suggested to use figures collected from property developers who may lower the figures.

Property developers want to hide the size of the property bubble in China on fears the government will try to slow it down to prevent it from bursting. And slow it down, they are.

The government has been working hard to control lending earlier this year. The most recent measures has seen 78 SOE (State Owned Enterprises) banned from making further investments in real estate. SOEs have been bidding up land prices and have been found have a major role in pumping up prices.

» Housing prices increased by 25 percent: report – China Daily, 2nd April 2010.