Prices of China's new homes in 36 large and medium-sized cities rose 6.25 percent from a year ago in June, as bank loans surged in the first half of this year, according to the National Development and Reform Commission (NDRC) on Monday.

The average price of new homes in the 36 cities rose to 6,554 yuan (US$959.4) per square meter, the (NDRC) said on its Web site.

The June figure was 1.09 percent higher than May, the NDRC said.

Government data showed bank lending hit a record 7.37 trillion yuan (US$1.08 trillion) in the first half, as the government looked to a moderately easy monetary policy to support economic recovery. The figure exceeded the full-year target of 5 trillion yuan.

Home prices in 70 large and medium-sized Chinese cities rose for the first time this year by 0.2 percent year on year in June, the NDRC said on July 10.

In the first six months, a total of 341.1 million square meters of homes were sold, up 31.7 percent from a year earlier. Sales values surged 53 percent from a year ago to 1.58 trillion yuan, the National Bureau of Statistics said on July 10.

The NDRC said home prices are expected to continue the upward trend amid vibration.

To prevent possible risks on the property market posed by a surge of bank loans, the China Banking Regulatory Commission said in a statement on Sunday that lenders should stick to rules on mortgage for second home buyers and step up scrutiny over approvals. Down payments on second homes are currently set at no less than 40 percent of the price.

(Xinhua News Agency July 21, 2009)