Xi’an outpaces home price growth in Chinese cities

Three months of fast rises for the Shaanxi provincial capital

The mainland Chinese city of Xi’an saw new home prices grow 24.2 percent in the year to February, the fastest rate among 70 cities surveyed by the state-run National Bureau of Statistics, Caixin Global reported.

This marks the third month on the chart summit for the Shaanxi provincial capital. The city also ranks among the three Chinese cities with the biggest new home price increases for seven consecutive months.

The fast appreciation of Xi’an residential property may be attributed to the city’s loose land and development policies encouraging individual real estate purchases, analysts believe. The city offers fast-tracked residence approvals, part of its campaign to attract talent.

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There is still room for new home prices in the city to grow, Caixin Global predicted, citing market observers.

In January alone, the government and real estate companies completed 30 land transfer deals, with total associated fees hitting CNY17.6 billion (USD2.62 billion), up 301 percent year-on-year, according to local real estate consulting firm Meicheng. The Xi’an municipal government raised land supply for residential property by 34.47 percent annually.

New home prices in the city also reached CNY4,291 per square metre in January, an annual growth of 71 percent.