Beijing, China (4E) – Home prices in China’s major cities dropped for a second straight month in June, according to results from an independent survey released Monday, signaling that the property bubble is deflating.
The average price of a newly constructed homes in 100 major Chinese cities stood at 10,923 yuan ($1,775) per square meter in June, lower by 0.50 percent from the previous month, according to the monthly survey of the China Index Academy (CIA).
Prices had slid 0.32 percent in May month-on-month, the first drop in almost two years, but CIA said the rate of decline accelerated in June. Prices were down in 71 cities and increased in just 29, the academy said.
China has tried to contain the rise in property prices, while also seeking to make affordable housing more available, as higher costs pose risk of discontent among ordinary citizens.
Only Shanghai posted a month-on-month rise in June among China’s 10 largest cities, with the average price climbing 0.25 percent to 32,469 yuan per square meter, the survey showed.
Prices in Beijing were down 0.61 percent to 33,269 yuan per square meter in June, but continue to be the most expensive city, CIA said.