China June home prices rise in fewer cities amid slower sales

[SHANGHAI] China's home-price gains tapered off last month, as second-tier cities joined some of the nation's largest hubs in imposing housing curbs to cool surging prices.

New-home prices excluding government-subsidized housing climbed in 55 cities in June, down from 60 in May, among the 70 tracked, the National Bureau of Statistics said Monday. Prices dropped in 10 cities, compared with four a month earlier. They were unchanged in five cities in June.

A surge in home prices showed signs of slowing after more regional hubs followed top cities Shanghai and Shenzhen to impose curbs designed to stem a surge in property prices.

Home sales moderated for a second straight month with a slower increase in property-development investment, raising questions on the sustainability of the liquidity-fueled rally.

Prices in June gained in 73 cities among the 100 tracked by SouFun Holdings, the owner of China's biggest property website, compared with increases in 74 the previous month. Average new-home prices rose 1.3 per cent, sliding from the 1.7 per cent seen the previous month.

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