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China's property market shows further signs of easing

The pace of growth in China property prices slowed further in February, according to Reuters' calculations based on official data released Tuesday.

New home prices rose 8.7 percent in February from the year ago period, compared to January's 9.6 percent rise.

On a month-on-month basis, prices rose 0.3 percent compared to 0.4 percent in the month before.

(Read more: Will a weaker yuan heighten China's property risks?)

According to figures released the National Bureau of Statistics, Beijing's new home prices were up 12.2 percent in February from the same month the year before, compared with January's 14.7 percent rise.

Billy Hustace | Photolibrary | Getty Images

New home prices in Shanghai, meanwhile, climbed 15.7 percent in February year on year, versus 17.5 percent in the previous month.

Andrew Sullivan, director of Asian Sales Trading at Kim Eng Securities, said the latest figures aren't a surprise and have been part of policymakers' agenda for a while.

(Read more: Is China's property sector facing a day of reckoning?)

"I think the key thing here is that the month-on-month data show us that the house prices are slowing and this has been part of the government's plan for some time, to try and reduce the amount of speculation in the sector. And it's very much linked to the banking system and trying to stop the hot flows of money, cut down on shadow banking system," he said.

Shares of China's property developers traded mixed on Tuesday. Analysts say a sweeping urbanization plan announced by China helped to support the market despite the data.

Late Monday, Beijing announced a plan — the country's first attempt at broadly coordinating one of the greatest migrations in history — which will see 100 million more people moving to China's cities by 2020.

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  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

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