(ECNS) - Home prices in 24 major Chinese cities stopped rising in June following measures to curb speculation, said a report by the National Academy of Economic Strategy at the Chinese Academy of Social Sciences.
The 24 cities with no increase in home prices for the month include the four first-tier mega cities of Shanghai, Beijing, Shenzhen and Guangzhou; four that closely follow in development – Tianjin, Chongqing, Suzhou and Hangzhou; and 16 others that are economically competitive across the country including Wuhan, Chengdu and Zhengzhou.
Data shows home prices in all the cities continued to rise for five months in a row, but from April the growth slowed. In June, the four mega cities saw average prices drop by 0.615 percent from the previous month.
The report also said China’s smaller cities are likely to see home prices fall in the long run as they lack high-end industries and can’t attract talent.
The transition from rapidly rising home prices to general satiability means that real estate developers will face more financial strain, and there’s a higher possibility of unfinished projects or delays, said the report.