China’s residential real estate growth rate slowed over the past two years

Almaty. August 14. Silkroadnews – China home sales grow at slowest pace in more than two years, Bloomberg reports.
“China’s home sales grew last month at the slowest pace in more than two years amid regulators’ moves to rein in soaring prices. The value of new homes sold rose 4.3 percent to 779 billion yuan ($117 billion) in July from a year earlier, according to Bloomberg calculations based on data released Monday by the National Bureau of Statistics. The increase is the smallest since March 2015, when the home market started to take off on policies to encourage demand from buyers”, the report said.
It is noted that restrictions on purchase of houses in major cities encouraged the purchases in the smaller ones, forcing local authorities to drastically change the policy introduced last year to reduce the excess of unsold houses in the second and third-tier areas.
According to Mao Shengyong, spokesman for the statistics bureau, the real estate market has
“cooled down” and investment in real estate will gradually slow down as well. The report notes, last month investment in real estate development increased 4.8% compared to the previous year, though down from 7.9% in June.