China's Property Price Rise Slows Its Pace in June

China's real estate price rise continued to slow its pace in June, according to statistics released by the country's top economic planning organ on Wednesday.

Property prices in 70 major cities increased by 8.2 percent in June from the same month last year, one percentage point slower than in May, said the National Development and Reform Commission in a bulletin on its website.

Market analysts attributed the slowdown to the government's efforts in tightening lending rates and mortgage requirements to control duplicated construction, curb excessive investments, and rein in surging property prices.

Prices of new houses rose 9.2 percent from that in last June, one percentage point lower than in May. The price increase for second hand houses slowed to 7.5 percent in June from 8.8 percent in May.

Non-residential houses saw their prices increase by 5.6 percent in June from the same month last year, 0.9 percentage point lower than in May.

New house prices in northwestern Urumqi, southern Haikou, eastern Ningbo, Hangzhou, and Beijing rose by 20.2 percent, 18.1 percent, 14.7 percent, 13.3 percent, and 14.3 percent, respectively, compared with the same month last year.

Chinese shares declined for the second day on Wednesday, mainly led by property developers. Shares of real estate firms fell across the board responding to early news that the government was likely to stick to tightening monetary policies in the second half, which would extend their losses.

China Vanke, the country's top real estate developer, fell 4.77 percent to 8.38 yuan. Poly Real Estate Co. slumped 5.09 percent to 14.35 yuan.