Beijing property market rebounds in July

Beijing's housing market perked up in early July, with home sales jumping to 8,862 units, 44 percent more than early June, according to official figures released on Thursday.

Trading volume for homes jumped 86 percent compared with the corresponding period in 2011, according to data released by the municipal commission of housing and urban-rural development.

Both new and second-hand home sales volumes rose sharply compared with early June and the same period last year.

The average price of a new home in early July was 20,932 yuan (3,284 U.S. dollars) per square meter, similar to the figure released for the previous month, according to data from 5i5j Real Estate, a major Chinese real estate company.

The People's Bank of China announced on July 5 that it would cut the benchmark interest rate for one-year deposits by 25 basis points and that for one-year lending by 31 basis points.

It marked the central bank's second interest rate cut in two months, with the move apparently intended to stimulate borrowing as the economy is expected to slow further in the second quarter of 2012.

First-time buyers and purchases of luxury homes jointly contributed to the increased demand, said Hu Jinghui, vice president of 5i5j Real Estate.

Lower prices from developers and the reduction of interest rates also prompted the rebound, Hu said.

Hu said he does not expect a rebound in the second half of the year, as the government has voiced its determination to continue to curb speculation in the property sector.

A slew of measures put in place 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.