Slower rise in home prices

Finance | 16 Jul 2021

China's average new home prices in 70 major cities grew 0.5 percent in June from a month earlier, down from a 0.6 percent rise in May, calculations, based on National Bureau of Statistics data, show.

Curbs and tightening credit conditions 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 percent, but were down from a 4.9 percent uptick in May, the first slowdown since December.

With policy tightening on developers' financing and tight credit quotas, China's real estate investment also rose in June at its weakest pace this year, separate official data showed.

China's property market has rebounded quickly from the Covid-19 shock of early last year, raising concerns about financial risks and overheating.

Late last year, authorities began stepping up curbs on the sector, including restricting debt accumulation by developers, capping banks' lending to the sector, and guiding banks to increase mortgage rates.

Despite a flurry of cooling measures, the head of China's banking and insurance regulator, Guo Shuqing, warned last month that the real-estate bubble remained serious.

Bureau data also showed 55 cities reported monthly gains, falling from 62 in May, and the fewest since January.


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