China land prices rise in Q1

China's land prices also went up in the first quarter, according to the country's land ministry. But the ministry says that's partly due to a lower base last year. Let's get you the details.

In the first quarter, the average land price of the 105 Chinese monitored cities was 3175 yuan, or 514 US dollars per square meter. That represents a 3.9 percent increase from a year ago. The land ministry says the tail-raising factor is a major reason behind the significant increase.

Zhao Song, Director Of Land Price Dept., Ministry of Land & Resources, said, The first quarter of last year was a freezing point for the land market. But land prices have gone up in the following quarters. The increase, together with the low base, make the yearly increase higher than last year.

Official data also suggests, among the 105 monitored cities, 92 saw a quarterly increase in residential land prices during the first three months of this year. However, the land ministry says they are mostly within a stable range.

Zhao Song said, "In 54 cities, or around half of the total monitored cities, residential land prices increased in a stable range, within one percent on either side."

Some analysts say rising land prices suggest a overall sound economy. But they argue, higher land prices won't necessarily lead to higher home prices - that, they say, is driven by market demand.