(Yicai Global) Aug. 14 -- After last year's real estate fever, the turnover volume of China's real estate market has started shrinking.

Sales of commercial housing rose 14 percent annually from January to July, a growth rate 2.1 percentage points down from the first six months, latest official data show.

The first-tier real estate market has cooled after government regulation, and will hold to stable growth in the future, China's national statistics bureau said.

"Specifically, the speculative and investment-oriented housing demand in first-tier and key second-tier cities has been controlled, while the third and fourth-tier real estate market is effectively destocking," National Bureau of Statistics spokesman Mao Shengyong told media today.

The amount of commercial housing for sale by the end of July dropped 11 percent annually, 1.4 percentage points up from the end of June, official data show, meaning government real estate market regulation is effective.

Though the housing market is chilling, its overall dynamic is stable, Mao said. Sales growth dipped in the first seven months, but still maintain expansion of over 20 percent, particularly in cities not the subject of government focus. Therefore, the real estate market will hew to stable growth in the future.

Referencing the influence of real estate on economic growth, compared with the first half year and last year, economic growth rose 0.2 percent points, while the real estate contribution to it dropped 2 percentage points, meaning the slipping real estate market will not necessarily drag down economic growth, Mao said.