Rate cuts lift China property prices

  • Property prices in China rose in July on the back of in borrowing costs and after some local governments eased restrictions on purchases.

    New home prices rose in 50 cities, compared to June.

    In recent months, Beijing has set out to control speculation in the property sector in order to prevent the formation of asset bubbles.

    Slowing growth has resulted in two interest rate cuts, which were announced in June and July this year.

    However, some analysts believe a combination of factors such as discounts by developers, easing of some government curbs and investors misreading the market, contributed to the rise in prices.