Beijing Home Sales Still Fading

First-tier cities are not going to revive the national housing market by themselves, but if there's a national recovery, first-tier cities are likely to lead the way.

WSJ Blog: Why Some Chinese Cities Boom Amid Property Bust
China’s richest cities – called first-tier cities – are generally regarded as Beijing and Shanghai as well as the southern manufacturing hubs of Guangzhou and Shenzhen. Experts say there are signs that Shanghai and Shenzhen in particular are overheating.

Average new home prices in Shenzhen are up 31.3% year-over-year in August, according to official data, much higher than the next highest year-on-year growth of 5.6% recorded in Shanghai.

...“The demand and supply dynamics in Shenzhen are vastly different from any other Chinese city,” he said.
The news out of Beijing, at least, says this move may be fading.

According to data from 5A Home Loan Services, mortgage transactions fell 15% from the first half of October. This is significant because Beijing sales were weaker in the first week of September due to the military parade in Beijing, so the comparison period is a favorable one. Home sales are also falling in early October:
According to the chain of home network Institute data show that during the National Day holiday this year (10.01-10.07) Beijing secondary residential net signed volume is 101 units, compared with last year increased by 45 units, an increase of 80.4%. But in the second week of October (10.05-10.11), Beijing 1565 sets of existing home transactions, net signed volume decreased by 47.6%. The actual time between the online record and the actual signing of the contract is a week or so, so this number reflects the actual situation of existing home sales during the national holiday, which is also a direct cause of the decline of mortgage transactions in the first half of October.
There's still optimism though:
In the second-hand housing transactions, home network chain LI Qiao-ling Institute believes that since September the central bank continued introduction of further easing of monetary policy will boost the market, second-hand housing turnover is expected in the coming weeks there will be further increased.

iFeng: 10月上旬京房贷交易量降15% 金九银十未现

No comments:

Post a Comment