Government policies slow rise of property prices

14:16, August 10, 2010      

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Property prices rose at the slowest pace in six months in July as the government clamped down on speculation to prevent asset bubbles and keep housing affordable.

Housing prices in 70 major Chinese cities rose 10.3 percent year on year in July, down from the 11.4 percent growth in June, the National Bureau of Statistics (NBS) said on Aug. 10.

The figure marked the third straight month that year-on-year growth in prices has slowed after Beijing issued a slew of measures to prevent the real estate sector from overheating and causing a bubble that could derail the economy.

Prices rose nearly 13 percent in April, the biggest year-on-year rise for a single month since July 2005, when the survey was widened to 70 cities from 35.

On a monthly basis, property prices were unchanged from June, the statistics bureau said.

The value of property sales in July fell more than 19 percent from a year earlier to 306.6 billion yuan (45.3 billion U.S. dollars). Property sales by floor space declined 15.4 percent year on year to 64.7 million square meters.

Investment in property development rose 37.2 percent to nearly 2.4 trillion yuan in the first seven months of this year. In July, investment climbed 33 percent to almost 412 billion yuan.

The government started a campaign in April to rein in soaring prices, including tighter scrutiny of developers' financing, limited loans for third home purchases and higher down payment requirements for second home purchases.

China's banking regulator said earlier this month that the government would maintain policies to cool the property market.

By People's Daily Online


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