China July home prices demonstrate signs of fatigue
In July, China’s home prices edged up 0.8% nationwide, but stalled or dipped more cites than in June, thus contributing to worries that one of the economy’s major growth drivers is losing steam, while offering some relief for policymakers worried regarding property bubbles.
A robust recovery in home prices as well as sales ensured a stronger-than-expected spur to the world's number two economy during the first half of 2016, helping to compensate stubbornly weak exports.
However, some financial experts point out that slowing price growth as well as weakening property investment suggest that the rebound might have peaked, as more local governments tighten limitations on home purchases in a bid to keep fast-surging prices in check.
Besides this, in China’s 70 key cities average new home prices soared 7.9% in July from a year earlier, as an official poll reported on Thursday, accelerating from a 7.3% leap in June.