Beijing, Shanghai Luxury Real Estate Stays Hot

No one is going to complain about overpriced luxury real estate and cities need land sale income.

High-end residential projects still popular in Beijing
Demand for high-end residential property continues to be robust in Beijing, with prices still high, said a report released on Wednesday, even as a land auction in Shanghai set a record.

From April to June, in the high-end Beijing residential market, the average price increased by 9.5 percent quarter-on-quarter to 56,307 yuan ($9,015) per square meter, said the report released by property service provider DTZ. Transaction volume reached 204,482.2 sq m, an increase of 2.7 percent from the same period last year, it said.

High-end residential property is defined as projects where the sales price is above 45,000 yuan per sq m for apartments and more than 30,000 yuan per sq m for villas.

"The growth in the sector can be attributed to the slight relaxation of government restrictions on pre-sale permits," said Zhao Yan, head of research for North China at DTZ.

Shanghai joins Beijing in approving more luxury housing
hanghai's city government became the second in two months to allow more luxury properties into the market, real estate agents and developers said, signalling some cities in China are easing restrictive policies that aimed to cool an overheated market.

City officials in Beijing had earlier approved seven projects in June selling at prices above a cap set last November, which made developers less interested in bidding for expensive land in the city, media reported on Monday.

Any move to drive up home prices in China, which are already near record levels, can be controversial. The central government prefers that local authorities help curb property speculation because it fears unaffordable housing could cause social unrest.

The effects of luxury sales can be seen in Beijing's overall housing market data from June, where prices increased, but sales plummeted.

6月北京商品住宅成交量同比跌超5成 二手房跌近3成

New home sales in June plunged more than 18% mom, 53% yoy, but prices increased more than 7% mom and 13% yoy. Total transactions of roughly ¥12.5 billion was down 10% mom and 48% yoy. Existing home sales fell 6% mom, 30% yoy. Luxury home sales plunged 60%, but prices increased 21%, both figures yoy. The monthly sales of luxury homes is a small figure, only 81 homes sold in June, allowing for a lot of volatility. The decision to ease policies on luxury homes may be in response to the weak sales data, along with pressure for land sale income.

Phoenix real estate July 9 hearing just ended in June in Beijing property market, "half" of the ending month, housing prices are also various hand over transcripts of the first half of the last "sprint." Last month, the Beijing property market is still low-key ending, commercial housing market turnover decline in value of the ring than an upward trend are the amount of second-hand housing market, sales volume decreased yoy.

Land market is also deserted, only one industrial land deal. In addition, with the advent of graduation season, the rental market chain volume rose 10%, popular universities, shopping district and the surrounding metro area gathered along the route to become demand.

New supply chain fell rose from the first housing Yaohao

Last month, the Beijing New housing market continued heavy volume of 9887 approved the sale of units, a decline of 26.14 percent, an increase of 27.9%. Specific to each administrative region, Tongzhou [ News Price apartment review ] to supply 2,261 units last month supply becomes large, in addition, Chaoyang District, Fangshan supply 2092 sets and 1584, respectively, sets, other regions other regional supply are set in 1500 the following.

On the project, three months before the new supply projects were ranked BBMG Chaoyang District • Department of Xingyuan (from housing), Yan Lan Chen Changping District and the new Tongzhou District, Taihe [ Introduction News ] • Found Garden supply area was 15.03 square meters, 73,800 square meters and 69,800 square meters.

As Beijing's first since the wave number of housing projects, Jinyu • exchange market Xingyuan just need to become the focus of attention. After June 28 to June 30, Jinyu • Department of Xingyuan finished No. 1882 signed before the election family room, the first round of the election room, the remaining houses 349 units. With independent real estate projects coming election room, the next focus will be phased pulled or net signed volume.

In the Beijing property market depth adjustment period, the supply volume has not increased demand. By the end of June, Beijing add more than 6,000 new residential units, while the volume of only 4 thousand units, lower than the same period in the first volume of new residential new units.

In recent months, the overall take-time perspective, the average Beijing commercial housing market has slowed down the rate of digestion. Agency data show that last month, stocks continued to rise, reaching 85,897 units, an increase of 1.70% compared with May, digestive cycle continues elongated.

Commercial housing turnover fell 53 percent year on year also fell three percent second-hand housing

Last month, the commercial housing market downturn trend still continues, volume chain are faced with no small decline. Agency data show that monthly turnover of 4465 sets the Beijing commercial housing market, a decline of 18.46%, compared to the same period last year by a whopping 53%.

Prices rose slightly last month, the average transaction price of 26,330 yuan / square meter, up 7.76 percent, rose 13.87%. However, turnover fell by the impact, turnover 12.446 billion yuan, down 10.36%, down 47.50%. Among them, small and medium size between the rings, six rings for the main contract.

Volume both fell with the chain of the situation, also in the second-hand housing market staged. LaSalle Bank, according to statistics, last month Beijing second-hand housing turnover 6464 units, a decline of 6.71 percent, down 29.98%.

Apartment luxury "homes insured amount" 64,297 yuan / square meters average turnover record

Housing prices in each push plate so that the acceleration of all the stops, the luxury market, "the amount of insured homes," although monthly sales fell below one hundred sets of transaction price was a record high. Ya Ho agency statistics show a total of 63 June Beijing quote over 50,000 / sqm apartment in the sale of luxury items, the monthly total turnover of 81 sets, plunged more than 60% year on year.

And lower sales in stark contrast to the luxury price bucked the trend. Also from Asian high statistics, June Beijing apartment luxury market overall average transaction price 64,297 yuan / square meters, rose 21 percent year on year, hitting a record high.

Deputy General Manager of Asian high high-shan analysis, and ordinary residential needs of a fast quick return of funds to different developers mansion is to enhance profitability, brand image effectively magic. Next, the majority of luxury apartments located within the City of Victoria developer, threw home for sell mentality and improve project price.

Graduation season driving the rental market is now beginning to heat up the chain of transactions rose one percent

With the advent of graduation season, June previews warming signs the rental market, volume 11.2% higher than in May significantly increase. Volume, rents rose significantly concentrated in the range of Haidian, Xicheng areas. Compared with previous years, Beijing rent or greatly reduced, the first half of the cumulative basic stop rising rents. Traditional rental season is yet to come, the rental market as a whole still remained at relatively stable state.

Most universities and popular shopping district surrounding significantly boosted in June traded. According to statistics, the benefits of the new West Central district June leasing volume rose nearly 6 percent, xiaoxitian, Zhichun and other district chain or are about 3 percent. In addition, the rent has remained relatively stable. According to the chain of home real estate market research statistics, the June average unit rent of 59.4 yuan / square meter, down slightly by 0.2% more than in May, rose 2.6%.

Except near the university, the surrounding area has become MTR demand aggregation. The high cost of rent by city, subway expansion of coverage and other factors, compared to previous years, more inclined to younger tenants rented, location is along the relocation. Most traditional rent district, as Tiantongyuan [ News Price apartment review ], huangcun, Beiyuan, Qinghe, Majiabao, etc., or because the flow is too concentrated, the larger the traffic pressure, the attractiveness of tenants compared to previous years reduced.

Chain of home real estate market research analysis, in accordance with the law in previous years, due to the second half of the season into the traditional rental market, rental growth will be higher than in the first half, but nearly a few years to see changes in the rent, the overall level of rents will remain stable this year.

1 comment:

  1. Who is still buying this junk and how are they doing it? Credit crunch is in early stages, corruption crack down rolling on - why and how are people paying so much for such low quality "luxury" housing?

    This all boggles my mind (and greatly frustrates me).

    - Luke