China New Home Sales Value Rose 22% in June From Year Earlier

  • The increase in sales is the slowest pace so far in 2016
  • Real estate investment increased 6.1% in the first half

The value of China’s new home sales rose about 22 percent in June from a year earlier, the slowest pace so far in 2016, as second-tier cities joined some of the nation’s largest hubs in imposing curbs to cool surging prices.

The value of homes sold rose to 1 trillion yuan ($150 billion) last month from a year earlier, according to Bloomberg calculations based on data the National Bureau of Statistics released Friday. The increase compares with a 32.9 percent surge the previous month and is down from a year-on-year gain of 71 percent recorded in March.

The government is seeking to clear a glut of unsold homes in smaller cities while encouraging curbs in economic hubs, where prices have soared amid stimulus measures and lowered interest rates. More regional hubs since last month followed top cities Shanghai and Shenzhen to impose curbs designed to stem a surge in property prices. Local authorities raised mortgage downpayment requirements for some homes in Xiamen, a southern port city in the Fujian province, and Hefei, the provincial capital of Anhui, where housing prices led gains in May.

Property-development investment growth, which expanded at the slowest pace in 15 years in December, was 6.1 percent in the first half of this year. That compares with a 7 percent increase in the first five months.

Developers bought 3 percent less land in June compared with a year earlier. New construction starts expanded 4.9 percent last month, the slowest pace this year, according to Bloomberg calculations based on the official data.

— With assistance by Emma Dong

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