Beijing home sales rebound

A property market rebound has been seen in Beijing as home sales in China's capital jumped to 25,602 units in June, 10.5 percent more than in May and 50.6 percent more than June 2011, new figures have indicated.

The trading volume of new homes in Beijing rose 14.1 percent month on month to more than 11,983 units in June, according to data released by the municipal commission of housing and urban-rural development on Sunday.

The average new housing price in Beijing in June was 20,678 yuan (3271.8 U.S. dollars) per square meter, a 2.1 percent increase from the previous month, according to data from 5i5j Real Estate, a major housing agent in China.

Lower prices from developers and banks' reduction of interest rates prompted the rebound, according to Hu Jinghui, vice president of 5i5j Real Estate.

The government's tightening policies have meant housing stock remains high. It is not necessary for home buyers to purchase in haste or make speculations, he added.

A slew of measures to curb runaway property prices since 2011, including restrictions on second-home purchases, higher down payments and the introduction of property taxes, have cooled the property market to a certain extent and made buyers hesitant to purchase.

In the latest moves to spur investment and growth, the central bank cut the benchmark interest rate by 25 basis points last month following a reduction of 0.5 percentage points for the reserve requirement ratio for banks in May.