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BEIJING, July 21 — Prompted by the detonating bank lending in the prototypal half, China s real property market appeared to have quickly returned to its ontogeny path.

The average price of new homes in 36 medium- and large-sized cities rose to 6,554 yuan per sq m in June, up 6.3 percentage from a year earlier, the National Development and Reform Commission said on its website yesterday. The prices were 1.1 percentage higher than that of May, the top economic planner said.

The add in new bank loans to 7.37 trillion yuan in the prototypal half helped spur demand for property and boosted prices, said Bohai Securities Co analyst Zhou Hu. Housing prices in 70 primary Hakka cities rose 0.2 percentage year-on-year in June, the prototypal time in seven months, according to the National Bureau of Statistics.

“China s property market is recovering and prices ought to continue to climb in the third quarter,” said Zhou.

Nationwide property sales in June rose 32 percentage by floor universe and 53 percentage by worth from a year earlier, the National Bureau of Statistics said in premature June. Investments in property evolution in the prototypal half increased 9.9 percent, the agency said.

“The economic stimulus and the shrewd add in overall liquidity have likewise helped to flex round the prepossession in the property sector,” said Wang Tao, head of economic survey in China for UBS Securities.

Lending to developers increased sharply recently following a era of credit restrictions, whereas mortgage lending has likewise accelerated, with the quarter-on-quarter annualized mortgage lending rising by 88 percentage in the prototypal quarter and likely to have continued at a rapid step in recent months, she said in a survey note.

Wu Xiaoling, analyst with the Greatwall Securities, said that another factor driving up the property investment was the mounting expectation on future inflation.

Vanke, China s biggest developer by market value, said on June 4 that its first-half property sales rose 28 percentage from a year earlier to 30.8 billion yuan.

In face of the mounting risks arising from the recovering real property market, the clear s top banking regulator has warned domestic lenders to strengthen scrutiny on mortgage lending approval.