China's new home prices grew slightly in May

BEIJING: New home prices in China rose at a steady pace in May, data showed on Thursday, as government measures to rein in the property market were eclipsed by heated demand for homes in some major cities.

Average new home prices in 70 major cities grew 0.6per cent in May from April, when it also grew at the same pace, according to Reuters calculations based on data released by the National Bureau of Statistics.

On a year-on-year basis, new home prices rose 4.9per cent, slightly faster than a 4.8per cent rise in April.

Chinese property prices have risen strongly this year despite increasing government attempts to reduce speculation in the market and prevent asset bubbles. Cooling measures have included imposing stricter rules for home buyers, curbing loans to developers and guiding banks to increase mortgage rates.

(Reporting by Colin Qian, Lusha Zhang and Ryan Woo; Editing by Muralikumar Anantharaman)