(Yicai) July 15 -- Second-hand home prices in Beijing and Shanghai, two of China’s four first-tier cities, rose in June from the previous month for the first time this year, thanks to the implementation of new supporting policies.

Preowned house prices in Beijing and Shanghai inched up 0.2 percent and 0.5 percent, respectively, last month from May, recording the first month-on-month increase this year, according to data released by the National Bureau of Statistics today.

While second-hand home prices in Shanghai’s neighboring Nanjing and Hangzhou also increased in the period, those in all the remaining 66 cities analyzed by the NBS declined.

China’s central bank eased property market restrictions on May 17, lowering the minimum downpayment to 15 percent on first homes and 25 percent on second homes, and cutting individual housing provident fund rates by 25 basis points. It also set up a CNY300 billion (USD41.3 billion) relending facility for government-subsidized housing projects. Since then, all four of China’s first-tier cities and some lower-tier cities have adjusted their housing policies.

Real estate industry-related indicators are still declining because the property market is adjusting and transforming, according to a spokesperson at the NBS. However, thanks to the efforts made by local governments, the market has started to recover to some extent.

First-tier cities are expected to continue optimizing their home purchase restriction policies and speed up the acquisition of apartments for affordable housing in the second half of the year, said Chen Wenjing, market research director at the China Index Academy. Moreover, they could further lower mortgage interest rates and transaction taxes and fees, Chen added.

China’s sales of new homes plunged 25 percent to CNY4.7 trillion (USD647.3 billion) in the first six months of the year from a year earlier, narrowing the decline by 3 percentage points from the first five months, NBS data also showed. Investment in real estate development fell 10 percent to CNY5.3 trillion, with the drop unchanged in the period.

Only Shanghai, Xi’an, Jilin, and Sanya saw their new home prices increase in June from May, up 0.4 percent, 0.2 percent, 0.2 percent, and 0.1 percent, respectively, according to the NBS. Prices in Wuxi and Shaoguan remained unchanged in the period, while those of all other 64 cities surveyed by the NBS fell.

Editors: Dou Shicong, Futura Costaglione