Location, Location, Location: Bifurcation Goes Local In Chinese Real Estate

Several articles arguing that China's housing market will see limited gains have come out in the past couple of weeks, with the number of articles increasing. One such one out Sunday says there will be a "slow bull market" in real estate. In third-tier cities, no jawboning is required. Inventory is excessive and demand is flat or even falling. Articles such as the one covered yesterday don't paint an optimistic picture long-term as demographics turn very negative, very quickly. Developers are still pessimistic that the current rebound in housing will last longer than a few months.

However, some industry insiders are not optimistic about this cycle of warming. Keer Rui Xue Jianxiong, research director at Shanghai organization, "said the macroeconomic downturn, housing prices trend will not last too long, the minimum duration of three months, this round of rebound in trading volume is short-lived."

According to the China Index Research Institute research report, May 100 cities (New) residential average price of 10,569 yuan / square meter, down turn up, rising 0.45%. Change the number from the city, the 48 cities rose, the chain fell 52 cities, compared with the previous month, prices rose this month, the number of cities increased 9.

"A lot of developers cover plate delay sales until the good news this year was focused on the release, causing sales to climb, so a rebound in first-tier cities, but the second and third tier cities are still in a relatively low state." Beijing real estate market analyst Zhang pine Catcher of the Economic Observer said, "this structure will house prices peaked in September, October, the situation in the past year house prices will not jump, this year's policy at a relatively stable state, it will return to the traditional trend."

iFeng: 楼市“慢牛”去库存 房价上涨空间有限

On the flip side are the pockets of insane speculative frenzy, a result of policy easing. China's real estate market bears a similarity with the U.S. market in that residency determines which school a student attends. Chinese pay inflated prices for low quality apartments if it means their child can attend a better school. Mix in the bailout policies and a Shanghai location, and the result is home sellers jacking up their prices by 1 million yuan overnight.

Shanghai property market after the spring into the recovery path, "Red May" predictable. Favorable interest rates and further easing of credit policy, May's transation volume continues to surpass April's, of which existing homes and luxury homes have set a new record high volume. School district homes are a hot topic among hot topics, in May it went berserk, seller hiked prices, an apartment price instantly rising one million yuan is not a rare thing.

In one area, homes were going from 6 to 6.5 million yuan in February, now they are selling for 7.1 to 7.4 million yuan.

In one case, a seller offers a 182 sqm home for 8.4 million yuan. Due to capital needs, the price is cut to 7.8 million to move it, but after seeing more than 30 people come by to see the property in the first two days, the price was immediately jacked up to 9 million yuan.

iFeng: 一学区房遭家长疯抢 有卖家瞬间涨价百万元