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China’s Failing Home Curbs Risk Bubble That May Hurt Economy

  • New-home prices rose the most in more than six years in August
  • Risk emerges in threatened bursting of property market bubble
General People's Bank Of China Images
Photographer: Qilai Shen/Bloomberg
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China’s attempts to slow runaway home-price growth in major cities are showing little sign of success, stoking the threat of a housing bubble that could destabilize the economy.

New home prices rose the most in six years in August, jumping 1.2 percent from July, according to Bloomberg calculations based on government data. Home prices rose in 64 of 70 cities tracked by the government, up from 51 the previous month. Shanghai prices surged a record 4.4 percent for a year-on-year gain of 31 percent, while Beijing’s climbed 24 percent from a year earlier.