China July new home prices rise 0.4% m-o-m, 9.7% y-o-y

[BEIJING] Average new home prices in China's 70 major cities rose 0.4 per cent in July from the previous month, slowing from June's 0.7 per cent growth as policymakers worked to cool an overheated market.

Compared with a year ago, new home prices rose 9.7 per cent in July, slowing from a 10.2 per cent gain in June, Reuters calculated from National Bureau of Statistics (NBS) data out on Friday.

Beijing's new home prices fell by 0.1 per cent in July, slowing from June's 0.4 per cent decline.

Shanghai prices stalled while Shenzhen prices fell by 0.2 per cent from a month ago.

Regulators have intensified their crackdown on property speculation since late March, taking tougher measures in at least two dozen cities to curb surging prices and leading to a modest slowdown in the real estate sector.

Growth in property investment already showed signs of fatigue after it eased to 4.8 per cent in July from a year earlier, versus 7.9 per cent in June, Reuters calculations based on official data showed.

Many analysts expect the sector to lose further momentum in the second half of the year in the face of tightening monetary policy and an official financial deleveraging campaign.

REUTERS