Housing market eases in July as price gains slow

Xinhua
China has taken a slew of measures to tackle housing problems in big cities to implement the principle that houses are for living, not for speculation.
Xinhua

China's housing market eased slightly in July, with home price increases slowing in 70 major cities, official data showed on Monday.

New home prices in four first-tier cities – Beijing, Shanghai, Shenzhen and Guangzhou – rose 0.4 percent month on month in July, according to data from the National Bureau of Statistics.

The growth rate has slowed 0.3 percentage points from that seen in June. Prices of second-hand homes in the four cities gained 0.4 percent, down 0.3 percentage points from the growth in June.

Second-tier cities saw a month-on-month increase of 0.4 percent in new home prices, slowing 0.1 percentage points from June.

On a year-on-year basis, new home prices in first-tier cities rose 6 percent in July, down from the 6.1 percent growth in June, while those in second-tier and third-tier cities went up 4.7 percent and 3.3 percent, respectively, data showed.

China avoided applying a deluge of stimulus policies when strengthening its macroeconomic policy adjustment. It has taken a slew of measures to tackle housing problems in big cities to implement the principle that houses are for living, not for speculation.

Housing authorities last month held talks with officials in Yinchuan, Xuzhou, Jinhua, Quanzhou and Huizhou, and urged them to stabilize their property markets as residential housing and land prices in these cities rose too rapidly over the first half of 2021.

Loans to the property sector saw slower expansion by the end of the second quarter, with outstanding property loans up 9.5 percent from last year to 50.78 trillion yuan (US$7.85 trillion) as of the end of June.

A new round of measures such as price management and control for second-hand homes were recently rolled out in several big cities, including Shenzhen.

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