Sales of new homes in Shanghai declined 48 percent in the first seven months of this year compared to the previous year, as the country’s efforts to cool the property market started to take effect, reported China’s state media.
Sales in terms of floor space reached 9.11 million sq m by the end of July, according to the Shanghai Daily, citing Shanghai’s statistics bureau. The central government recently issued a series of measures to prevent the real estate market from overheating and causing an asset bubble that could derail the world’s second largest economy.
Chinese authorities have also tightened restrictions on advance sales of new projects, increased down payment for second mortgages and imposed curbs for third loans.
According to the National Bureau of Statistics, the property price index reached 10.3 percent in July. This was higher compared to last year, but lower from the 12.8 percent increase in April. Property prices in Beijing remained unchanged in July, while down 0.6 percent in Shanghai and 0.4 percent in Shenzhen.
Chinese Vice-Premier Li Keqiang has urged local officials to impose the government’s policies to increase the supply of affordable housing and curb speculation in the property market.