Restrictions in bigger cities had spurred buying in smaller ones, forcing local authorities to sharply reverse policies they had put in place last year to reduce a glut of unsold homes in second and third-tier areas. China's housing market is showing signs of cooling, with home sales last month increasing by the smallest amount in two years as regulators look to rein in price growth. The government has been trying for months to cool a property bubble that was fueled by cheap loans and lax lending standards at state-owned banks such as China Development Bank (CDB). The data marked the smallest rise since March 2015, when policies to encourage demand from buyers were introduced. Real estate investment is now predicted to slow at a "gradual pace", according to NBS spokesman Mao Shengyong, who added that speculation had been curbed.
China's housing market is showing signs of cooling, with home sales last month increasing by the smallest amount in two years as regulators look to rein in price growth. The government has been trying for months to cool a property bubble that was fueled by cheap loans and lax lending standards at state-owned banks such as China Development Bank (CDB). The data marked the smallest rise since March 2015, when policies to encourage demand from buyers were introduced. Real estate investment is now predicted to slow at a "gradual pace", according to NBS spokesman Mao Shengyong, who added that speculation had been curbed.