Slowing China home price surges could hamper economic growth prospects

In July, home price surges in China's biggest cities demonstrated signs of easing, adding to worries that one of the economy's major growth drivers is losing steam, although providing some relief for policymakers concerned over property bubbles.

A robust recovery in home prices as well as sales provided a stronger-than-expected spur to the world's second-largest economy during the first half of the year, partly compensating poor exports.

However, some financial experts say that tumbling price growth along with weakening property investment suggest the rebound might have peaked, as more local governments tighten limitations on home purchases in a bid to keep fast-surging prices in check.

Analysts are assured that the housing market is currently cooling down from the rebound during the first half. Property investment will keep tumbling, and it will apply more pressure on the Chinese economy in the future. 

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