Housing prices in 70 large and mediumsized cities grew 11.4 percent year on year in June, 1 percentage point lower than in May. On a monthly basis, June prices in those cities fell 0.1 percent compared with May, said the NBS.

New home prices rose 14.1 percent year on year in June, while those of second-hand homes gained 7.7 percent.

In an attempt to tame property fever, the government initiated a string of austerity measures in April, including higher down payment requirements for second-home purchases and suspension of loans for thirdhome buyers.

The Ministry of Housing and Urban-Rural Development has vowed to continue with the tightening measures and urged local governments to strictly implement them. Efforts will be made to speed up building of affordable houses for low-income residents and strengthen supervision over speculators, said the ministry.

With sales stagnating and property developers under financial pressures, house prices nationwide are set to head south sometime soon, said Zhou Jingtong, a senior researcher with the Bank of China Ltd.