China Economy Slows; Home Sales Rise

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China's economy is slowing, but homes sales continue to surge.

The number of home transactions rose 24 percent in June, despite government efforts to slow the market. In the first half of the year sales reached 2.82 trillion yuan, a 46 percent increase from the same period a year earlier, according to new data released by the National Statistics Bureau.

The increases may dash hopes that the government will ease its restrictions on home sales.

"In the future, we still need to step up control of the property market in accordance with the State Council's existing policies," National Bureau of Statistics spokesman Sheng Laiyun told reporters.

China's economic growth slowed to 7.5 percent year-on-year, down by the consistent double digit increases of past years. If the growth rate for the year remains at 7.5 percent, it would be the smallest growth period in 23 years.

But many analysts believe slower growth will also lead China to a healthier, sustainable economy. In similar fashion, China has moved to slow the rapid growth of the housing market, out of fear that a bubble is forming and homes are increasingly unaffordable to the majority of the population.

China's government moved earlier this year to restrict investment purchases and tighten lending on homes. But the latest number suggest the measures might not be working.

Real estate investment in the first six months of 2013 rose 20.3 percent from a year earlier. China's top 10 developers rose 44 percent in the first half of the year to 490 billion yuan ($79.8 billion), according to a report by China Index Academy, a research institute established by SouFun, the largest real estate portal in China.