People's Daily Says Land Sales Revival in June, Lifted By Insurance Companies

This article is mainly about the housing market not behaving as it did in 2009. There won't be a huge, widespread increase in prices. The People's Daily said the same thing a week or two ago, and other articles have made a similar argument.

On part is new though: in land sales in first-tier cities increased in the first week of June.

"3.30" after the New Deal mortgage, land line market rise again in April, and the outbreak in early June. According to Centaline Property Research Department statistics show that the first week of June, first-tier cities in total contracted residential land 6, with an average floor price of up to 21,010 yuan / square meter, creating a single-month record.

Line hot land market and housing prices related to the financial side improvement.

...The influx of financial giants, but also for the land market add a fire.

On the one hand, financial institutions and co-housing prices to ease the housing prices get financial pressure. Since last year, gold, investment, China Resources, Wharf, the first open, Poly and other well-known housing prices have peace with China to expand cooperation with its financial strength, in Hangzhou, Guangzhou, Beijing and other places frequently take place. Consecutive year in Shanghai to get to the Sunshine City, also introduced in April this year to become the largest single shareholder of the people voted. In addition, NCI also in June became the second largest shareholder of Franshion. On the other hand, financial institutions, particularly insurance companies have become the main force in the land market. There are 18 insurance companies added a real estate investment, like Yongcheng Insurance, Tian An Insurance are in this to win the Shanghai World Expo plots, into high-end office market last year.

Something to keep an eye on. One week doesn't make a trend, but if land sales increase, that is good news for local government finance. Still doesn't solve the bifurcation though.

iFeng: 人民日报：一线楼市已经筑底 但不会过快上涨