Property price growth slows in June

Chinese property prices grew at a slower pace in June, an indication that government measures to rein in price growth are having moderate success, the Financial Times reported. Housing prices in 70 major cities rose 0.1% from a month earlier, down from 0.2% in May and the smallest monthly increase this year, according to data published by China’s national statistics bureau. On an annual basis, property prices rose 4.2% year-on-year in June. That was well below the annual increase in the consumer price index for the month (6.4%), another signal that China’s real estate market has begun to cool. Beginning early last year, the government unveiled a series of measures to slow price growth, including raising down payments and mortgage rates and limiting the ability to purchase more than one home. Despite these trends, many economists still view the potential for a property bubble as one of the biggest risks facing China, threatening sustained growth and social stability.