June home price growth slowest in 10 months

PUBLISHED : Thursday, 17 July, 2008, 12:00am
UPDATED : Thursday, 17 July, 2008, 12:00am

Housing prices on the mainland last month rose at their slowest pace in 10 months, with the average prices in 70 major cities climbing 8.2 per cent year on year, down from 9.2 per cent in May, the National Development and Reform Commission said yesterday.

Nevertheless, growth in overall housing prices in 12 cities rose more than 10 per cent from the same period last year, with Urumqi in Xinjiang province topping the chart with a 19.3 per cent increase, the planning agency said on its website.

Growth in Yinchuan, Haikou, Sanya, Lanzhou and Yuchang was speeding up from a month earlier.

Month-on-month growth in Beijing slowed to 0.1 per cent from 0.4 per cent in May, while Shanghai showed no growth, compared with a 0.1 per cent gain in May. Guangzhou eased 0.2 per cent and Shenzhen 1.2 per cent.

Analysts said it was hard to forecast the trend of property prices for the second half because of uncertainties.

'Slowing domestic demand in the United States is slowing China's exports, which in turn affects its economy,' said an analyst in Shanghai.

Also, the pace of foreign investment inflows, inflation and the performance of stock markets have a big impact on property prices and transactions.