(ECNS) -- Sales of second-hand homes in Beijing dropped 56 percent by late June compared to the figure in May, China Central Television reports.
Data from several real estate agents showed sales of second-hand homes within the Third Ring Road fell by about 40 percent compared to the previous month, with the decline higher in other areas.
Centanet Property said 9,500 deals were made on second-hand homes by June 26 while it was more than 20,000 in May.
Zhang Dawei, chief analyst at the agency, said falling prices and market adjustments in Shanghai and Shenzhen are having an impact on Beijing home purchasers, although the capital city has not introduced new polices.
The second-hand home market continued on a downward track since the start of the second quarter after sales hit a record high of over 30,000 in March.
The price increases for older homes also slowed in June to an average of 41,400 yuan ($6,200) per square meter, up 0.5 percent from May.
Further analysis showed sales of two-bedroom homes declined from a 40 increase over the past two years to a 28.48 percent rise, showing that Beijing's upper-end residential market is still strong.
Insiders said developers of new residences will face mounting risks due to the increased cost of land.
