CHINA’S new-home prices rose further in May, two private surveys showed yesterday, with values rising at their fastest pace in second-tier cities and reinforcing concerns that some parts of the property market are overheating.

    Prices of new homes in 100 biggest cities in May rose an average 10.3 percent from a year earlier, quickening from 9 percent in April, a poll by property services firm China Real Estate Index System (CREIS) showed.

    Against the previous month, May home prices were up 1.7 percent from April, compared to a 1.45 percent gain in the previous month.

    “Growth in first-tier cities were flat from the previous month, while growth in second-tier accelerated further and third-tier contracted slightly,” CREIS said. “Looking forward, some cities still see overheating risks in both housing and land market, so the government will continue to monitor closely and introduce tightening measures.”

    China’s home prices posted their fastest growth in two years in April, official data showed, with gains in regional centers indicating a broader recovery in the country’s housing market beyond the major cities.

    China’s eastern cities of Nanjing and Suzhou last month limited the highest bidding price developers can offer in land auctions, in an effort to control surging land costs that have been driving up home prices.

    A separate survey by Real Estate Information Corporation (CRIC) showed average prices in China’s 288 cities rose 8.8 percent in May compared with year-earlier levels, the tenth consecutive year-on-year rise.

    The prices climbed 1.6 percent from April, also accelerated from 1.5 percent in the previous month.(SD-Agencies)