China house prices cooling

The push by China’s policymakers to rein in property bubbles looks to be getting traction, according to early indicators from the nation’s biggest cities.

Beijing home sales volume plunged 41% year-on-year last month, while Shanghai’s slumped 18%, China Real Estate Information data show, after new purchase restrictions and tightened mortgage lending. Transactions fell 50% in smaller cities.

Now policymakers must balance deflating property prices with safeguarding the expansion.