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In July, China’s surge in new home prices slowed, with Beijing prices tumbling for a second straight month, underpinning expectations of further slowing later in 2017.
Government limits to keep prices in check put pressure on larger cities, with July demonstrating the slowest ascend since August 2016. As for smaller centers, they pulled back, but remained sturdy. In Tier-3 cities new home prices surge declined to 0.6% from 0.9% in June, as the National Bureau of Statistics informed in an analysis accompanying the data publication.
New home price ascend in China's top-tier cities stood intact from June. Meanwhile, surge in Tier-2 cities went down 0.2%, as the NBS told.
Retreating prices along with slowing property investment and sales could potentially denote a moderating property market, which is unlikely to suffer the abrupt correction some investors had feared.
However, many financial experts expect the sector to lose more momentum during the second half of 2017 amid ongoing policy tightening as well as an official financial deleveraging campaign.
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