Home prices moderate in June, surveys show

China's home prices eased further in June, two private surveys showed on Tuesday, adding to signs of a cooling housing market which is posing a growing risk to the broader economy.

Prices of new homes in 288 cities fell 0.06 percent in June from May, the third month-on-month drop in a row, a poll by real estate services firm E-House China Holdings Ltd showed.

Compared to the same period a year ago, home prices rose 5.3 percent in June, easing from a rise of 5.8 percent in May and marking the eighth consecutive month of slowing annual property inflation.

A separate survey by China Real Estate Index System (CREIS) showed average prices in the 100 biggest cities fell 0.5 percent in June from May, the second consecutive monthly drop.

Meanwhile, home prices still rose 6.5 percent in June from a year ago, moderating from a 7.8 percent gain in May, CREIS said.

"After nearly two years of continuous rise, China's home prices have entered a period of adjustment," said CREIS.

After a strong performance in 2013, China's real estate market has softened. Sales have slowed, new construction has dropped off sharply and banks have become increasingly cautious about lending to developers and homebuyers.

Accounting for about 15 percent of China's economy, the real estate sector is the country's biggest wild card this year in terms of growth, some analysts said.