The bureau of statistics said an easing economy and shrinking housing demand had started to drive down the growth of house prices.
The NBS comments also warned that in spite of the slowdown in price increases, the real-estate market was not expected to see a return to rational prices until reforms are implemented.
The report said the average growth rate for housing prices in January was 11.3% on year, but had shrunk to 8.2% in June
The report attributed the slowing of the country’s rapid housing-price rise to monetary policy tightening, as well as a move by China’s Cabinet — the State Council — to reclaim land that had been sitting idle for at least two years as of January.
Source: Market Watch