The housing prices in China rose in July for the second consecutive month, according to official data, which keeps the pressure on Beijing to halt the acceleration of real estate prices.
Many economists have warned that a housing bubble burst is a major risk facing the world’s second largest economy in the medium and long term. In the short term, rising housing prices are driving consumer inflation in China accelerated to 6.4% in June and 6.5% in July.
The average price of new homes rose 4.3% in the month of July, compared to the same month in 2010. A rebound over the annual rate of 4.2% in June and 4.1% in May.
The price of homes rose 0.1% in July
Prices of new homes climbed 2.5% year on year in Shanghai last month, while the rate in June rose 2.2%. In Beijing, inflation fell to 1.9% from 2.2% in June, when some agents began to lower prices.
In monthly terms, house prices rose 0.1% in July, the same growth was recorded in June. The monthly housing inflation rose in 23 Chinese cities and the prices of new homes fell in 14 cities, up from 11 in June.