CHINA’S new home prices accelerated at their fastest pace in almost two years in July, led by smaller cities and highlighting challenges policymakers face in stimulating a slowing economy without fueling a property bubble.

Average new home prices in China’s 70 major cities rose 1.1 percent in July from a month earlier, according to calculations based on an official survey Wednesday, the fastest pace since October 2016 and up from the previous month’s reading of 1 percent.

Outside the recent boom periods of 2016 and early 2013, monthly price gains of more than 1 percent have been rare in China’s official home price data.

The July increase also marks the 39th straight month of gains, calculations showed, despite tougher curbs designed to rein in a more-than-two-year real estate boom.

The 35 tier-3 cities in the survey led the price rally in the month while price growth in China’s four largest cities of Beijing, Shanghai, Shenzhen and Guangzhou, and the 31 tier-2 cities, which comprise sizeable provincial capitals, was more subdued.

The market’s surprising resilience also partly reflects the prevalence of buyers skirting existing restrictions on purchases.

China said in late June that it would renew a crackdown on property irregularities in 30 major cities this year, prompting several local governments to ban corporate entities from buying residential properties.

The majority of the 70 cities surveyed by the National Bureau of Statistics still reported monthly price increases for new homes and 65 cities reported higher prices in July, up from 63 in June.

(SD-Agencies)