Price growth in main cities like Beijing and Shanghai, yet, continued to accelerate at 0.54 percent compared to 0.48 percent in June
According to South China Morning Post, cooling measures such as higher mortgage rates and price caps on resale homes slow China’s growth in new home prices, particularly in smaller cities.
Based on data from independent real estate research firm, China Index Academy, new home prices in 100 cities rose 0.35 percent in July compared with the 0.36 percent growth in June.
Chinese authorities implemented measures this year to control the red-hot real estate market, including caps on developers’ borrowing and strict bans on illegal flows of funds into the sector.
Cao Jingjing, the group’s director, said, “New home growth softened in July against the backdrop of stringent measures and tighter credit.”
Growth in home sales is anticipated to remain mild as the curbs are unlikely to be eased.
In July, China’s housing ministry encouraged five cities to stabilise their property markets, while the central bank demanded lenders in Shanghai to increase interest rates on mortgage loans.
China’s smaller tier-three and tier-four cities’ prices rose 0.21 percent on-month, versus 0.29 percent in June. Tier-two cities gained 0.29 percent, slowing from June’s 0.31 percent.
However, price growth in China’s biggest cities such as Beijing and Shanghai continued to accelerate at 0.54 percent compared to June’s 0.48 percent growth. This suggests steady demand for properties in the country’s most economically vigorous cities.
On an annual basis, China’s new home prices grew 3.81 percent in July, slowing from the 3.89 percent gain in June.
July data for China’s home prices will be officially released by the National Bureau of Statistics in mid-August.
The Property Report editors wrote this article. For more information, email: [email protected].
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