On average, the 70 cities prices increased by 0.66% in June, down from 0.71% in May. Average prices are currently up 10.78% year-on-year (YoY), and up 43.50% compared with December 2010 when the index was first established. In June 63 cities recorded an increase in prices, while 2 recorded no change and 5 recorded a decrease in prices.
Residential price growth remained healthy in June averaging 0.66% MoM growth, just down a fraction from last month. Second and third-tier cities still performed the best. Performance of individual cities, however, remained varied with cities such as Xi'an Chengdu in the west still outperforming (admittedly from a lower base) their coastal peers. Residential policy stances have been responsive to market conditions at a local level encouraging or containing low growth or high growth respectively. Monetary policy has remained generally relatively supportive with mortgage rates in many parts of the city turning more favourable, at the same time local governments, especially of provincial capitals and mid-size cities, are being encouraged to make their cities more receptive to educated/skilled workforces, this could be in response to slowing urbanisation as well as softening economy.