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It seems like that the activity in China’s property market is starting to simmer down as official data released on Friday showed that the country’s new home prices has slowed down despite recent gains, as policymakers try to keep an overheated market under control.

Since late 2015, China’s property market has been booming from big to smaller cities, which led authorities to impose measures in an effort to deflate the housing bubble.

Following the move, the National Bureau of Statistics (NBS) stated that speculative property buying had been successfully carried out and the overheated property market had cooled to some extent.

With regards to the latest data, the statistics bureau added that the housing market should still be able to maintain stable growth, whereas several economists expect a slowdown in the residential sector by the second half of the year regardless of policy tightening and the act of financial deleveraging.

Analysts also do not see the possibility of a major price fall or crash, given the strength of underlying housing demand.  

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Out of the 70 major cities in China, 56, excluding government-subsidized housing got a boost in new home prices from the previous month which was just a tad short from June’s 60 cities.   

Moreover, the government’s attempts to moderate prices are proving to be effective so far, seeing that NBS reported that China’s new house prices gained 9.7 percent in July, slowing from a 10.2 percent growth in June.

Average new home costs of the country’s 70 major cities edged higher by 0.4 percent but also losing its pace from June’s 0.7 percent.

Among the 15 cities that NBS is closely observing, five of them remained flat, while nine cities had a month-on-month price lows against six in June, but average decline was slower at 0.2 percent compared to 0.3 percent drop in the same month.

Prices of new properties in Beijing fell 0.1 percent after slipping 0.4 percent in June, making its second straight month of declines, while Shenzhen was down by 0.2 percent, and Shanghai’s prices remained unchanged.

The ancient city of Luoyang performed the slowest in the residential property market with prices climbing 0.7 percent in July, significantly falling behind its 2.4 percent increase in June, while the prefecture-level city of Jinhua lifted 1.3 percent in July, the fastest rate among the 70 cities.

China’s biggest gainer in residential properties was recorded in Beihai, with a 1.5 percent boost, and the sharpest loss of 0.3 percent was seen in Anquing.

Besides the cooling prices, sales volume toned down as well since strict borrowing regulations held more people back from being approved for mortgages in more cities.

Sales value of new homes added 4.3 percent in July to CN¥779 billion ($116 billion) from the same period last year, the slowest annual rate in more than two years, against a 26.4 percent gain in June.

Ouyang Jie said that they believe that the current restrictions on purchases, borrowing and price growth will go on for five more years, but the price limit over new units may loosen up bit by bit over the years.

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