Transactions in residential properties continued to decline in July as a result of tightened housing policies and financing for homebuyers, particularly in key cities in China.

The combined space of transacted residential properties in Beijing, Shanghai, Guangzhou and Shenzhen was 2.4 million square meters, down 17 percent month-on-month, or 46 percent year-on-year, according to data from China Real Estate Index System, Beijing-based real estate market information provider.

In 16 second-tier cities, including those with fast net population inflows such as Wuhan, Chongqing, Nanjing, Chengdu and Qingdao, the combined space of transacted residential properties in July declined 4 percent month-on-month and 23 percent year-on-year to 12.28 million square meters.