Chinese home prices rose in July for a third consecutive month, though at a slower pace.
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The NBS data showed home prices across China rose month-on-month in 31 of the 70 major cities monitored, up from 27 in June.
China’s home prices rose in more cities than they fell in for the first time in 16 months, as sales extended a rebound after authorities removed some property curbs and interest rates fell.
Prices in first-tier cities such as Beijing, Shanghai and Shenzhen have been leading the recovery. On annual basis, house prices climbed in 67 out of the 70 cities during July.
“It’s the policy that makes it possible to buy my second apartment”.
Despite rising home prices, China’s property investment continued to slow, fresh evidence of cautious attitudes from builders and the headwinds facing the industry, said Xia Dan, a senior researcher of the Bank of Communications.
July prices rose by 0.3%, the third month in succession that an increased has been reported.
China Vanke (2202.HK), the country’s largest property developer, said on Monday that the housing market is slowly emerging from a year-long slump, but it will take time to see a full recovery.
The Chinese yuan weakened against the U.S. dollar in the Asian session on Tuesday.
In addition, recovery of the housing market in small cities is weighed down by high inventories, said Zhang Dawei, chief analyst at Centaline Property.
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Bank of Communications forecast that the recovery of the housing market will continue this year as liquidity remains ample and expectations of rising prices will further prompt more people to buy.
