(Yicai Global) Feb. 27 -- House prices in 30 of China’s 450 cities with a permanent urban population of less than 500,000 were higher than CNY10,000 (USD1,435) per square meter in January, Yicai Global calculated based on figures from national housing market price platform Creprice and real estate data provider Anjuke.

The 30 cities are all located in the provinces of Zhejiang, Jiangsu, Fujian, and Hainan, with the exception of Huangshan, a well-known tourist city in Anhui province.

Twelve of the 30 where house prices are above CNY10,000 per sqm are in Zhejiang, with seven in the top 10. In addition, one of the two where prices are over CNY20,000 is Lishui, also in Zhejiang.

Zhejiang’s private sector economy developed quite early, hand in hand with the property market, Tang Hairu, deputy director of the Hangzhou planning commission’s group of experts, told Yicai Global. Consumers in the province are more willing to buy homes, maintaining or increasing the value of properties, he said.

Moreover, economic development in Zhejiang’s small cities is relatively balanced, Tang added, noting that all local counties have unique industry chains and industrial development directions, with a generally high level of affluence, which strongly supports house prices.

Geographic factors also affect Zhejiang’s property prices. The province is mountainous and has few plains, so its land supply is limited, said Zhang Dawei, chief analyst at Centaline Property Agency. The relation between supply and demand is a big determinant of house prices, he said.

The other small city where home prices are above CNY20,000 per square meter is first-ranked Wanning, in the southern island province of Hainan, at CNY20,864 per sqm.

House prices in Wanning are high because of tourism, not because the city has a strong local economy or property consumption, according to Zhang Bo, director of think tank 58 Anjuke Institute. All cities on the coastline between Sanya and Wanning have rather clear advantages, he added.

Editors: Shi Yi, Futura Costaglione