New home prices surge in most cities

Chinese cities where home prices rose exceeded those where they declined for the first time in 16 months in July, as authorities removed some property curbs and interest rates fell.

New-home prices rose in 31 cities of the 70 the government monitors, from 27 in the previous month, according to data released by the National Bureau of Statistics on Tuesday. The prices dropped in 29 cities and were unchanged in 10.

Led by some of the biggest Chinese cities, prices extended gains from the second quarter, spurred by the easing of mortgage policies at the end of March and four reductions in borrowing costs since November. The trend will continue this year as liquidity remains ample and expectations of rising prices further prompt more people to buy, overriding any potential impact from a devalued yuan and a stock-market selloff, according to Mizuho Securities Asia Ltd.