New home prices in major Chinese cities rose strongly in June compared with a year ago, according to an analysis of official data released Thursday, but the market is also showing signs of moderation following last month’s government-led liquidity squeeze.
Prices rose an average of 6.12% in June compared with a year earlier, according to Wall Street Journal calculations based on data released by the National Bureau of Statistics on 70 large and medium-size Chinese cities. Prices rose in 69 of cities in June compared with a year earlier, unchanged from May.
The result marks the latest pickup in the pace for home-price appreciation on a year-to-year basis—prices rose 5.32% in May and 4.27% in April, according to the calculations.
But compared with May, home-price appreciation appears to be easing a bit. Prices in the 70 cities increased an average 0.78% in June compared with May. They had risen 0.86% in May and 0.9% in April compared with the prior months, according to the calculations.
The data showed that prices of new homes in 63 of 70 large and medium-size cities rose in June from May. Prices fell in five cities and were unchanged in two cities. In May, prices rose in 65 cities.
“The moderation in growth momentum will likely continue, but home prices are not going to drop,” said Lee Wee Liat, a property analyst at BNP Paribas BNP.FR +0.16%. A decline is unlikely as many Chinese cities have issued guidance targeting home price growth at 10%, alongside expected gains in disposable income per capita, Mr. Lee added