Staff of Reuters 2 minutes ReadFILE PHOTO: China Fortune Land Development’s Taoyuan Xindu Kongquecheng apartment complex in Zhuozhou, Hebei Province, China, on March 19, 2021. Lusha Zhang for Reuters BEIJING, China (Reuters) – China’s new home prices climbed at a slower pace in June, according to data released on Thursday, as government attempts to temper the country’s hot housing market slowed the economy even more. According to Reuters calculations based on data supplied by the National Bureau of Statistics, average new home prices in 70 major cities rose 0.5 percent in June from a month earlier, down from 0.6 percent in May. New home prices increased 4.7 percent year over year, less than the 4.9 percent increase seen in May. The rapid recovery of China’s housing market following the COVID-19 shock early last year has raised concerns about financial dangers and overheated. Late last year, authorities began tightening restrictions on the sector, including limiting developer debt accumulation, capping bank financing to the sector, and directing banks to raise mortgage rates. However, the changes are beginning to have an impact on the property sector, which is an important driver of economic growth. Despite the flurry of cooling measures, Guo Shuqing, the director of China’s banking and insurance regulator, cautioned last month that local real-estate bubbles were still a severe threat. According to the NBS, 55 cities reported monthly growth in June, down from 62 in May. Liangping Gao and Ryan Woo contributed reporting, while Sam Holmes edited the piece./n
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