2/2 © Reuters. FILE PHOTO: Buildings of residential compounds are seen in Shanghai, following the coronavirus disease (COVID-19) outbreak, China October 9, 2020. REUTERS/Aly Song 2/2 BEIJING (Reuters) -China’s new home prices in June rose at the slowest clip since April, data showed on Thursday, as government measures to cool a hot housing market further
© Reuters. FILE PHOTO: Buildings of residential compounds are seen in Shanghai, following the coronavirus disease (COVID-19) outbreak, China October 9, 2020. REUTERS/Aly Song
BEIJING (Reuters) -China’s new home prices in June rose at the slowest clip since April, data showed on Thursday, as government measures to cool a hot housing market further tapped the brakes on growth.
Average new home prices in 70 major cities grew 0.5% in June from a month earlier, down from a 0.6% rise in May, according to Reuters calculations based on data released by the National Bureau of Statistics.
Tightening credit conditions and existing curbs have helped rein in rising housing prices, said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution.
Compared with a year earlier, new home prices rose 4.7%, the slowest since April and down from a 4.9% uptick in May.
In a separate statement, China’s real estate investment rose in June at its weakest pace this year, with policy tightening on developers’ financing and tight credit quotas.
China’s property market has rebounded quickly from the COVID-19 shock early last year, raising concerns about financial risks and overheating.
Authorities began stepping up curbs on the sector late last year, including restricting debt accumulation by developers, capping banks’ lending to the sector and guiding banks to increase mortgage rates.
But the moves are starting to drag on the property sector, a vital source of growth for the economy.
“Housing price growth is expected to soften in the future with ongoing tight credit and the possibility of more cities implementing pricing reference for resale homes,” said Xu Xiaole, analyst at Beike Research Institute.
Despite a flurry of cooling measures, head of China’s banking and insurance regulator Guo Shuqing warned last month that local real-estate bubbles remained serious.
The NBS data also showed 55 cities reported monthly gains, falling from 62 in May.
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