China’s housing boom is shifting from its biggest cities such as Beijing and Shanghai to provincial capitals, said Shanghai property developer CIFI holdings after the company posted a 28 per cent growth in 2016 full year net core profit.Land sales data shows other developers agree.
First-tier cities are gradually transforming into markets dominated by leasing activities from developing and selling because property prices are already too high and new land supply is very limited, Lin Zhong, CIFI’s chairman, said during an annual results briefing in Hong Kong.
“So second-tier cities, which have just began to feel the heat, will usher in the peak season of home construction and sales and we’re bullish on that,” Lin said.
...He added that some of the second-tier cites may see new home prices double over the next three to five years.
SCMP: China’s city land sales surge 73 per cent despite cooling measures
China’s land sales in 50 major cities surged 73 per cent in the first two months of 2017 despite a raft of measures rolled out in a bid to cool the red-hot property market.
Fifty city governments received a total of 452.8 billion yuan (US$65.6 billion) from land auctions during January and February this year, up from 262.5 billion yuan in the same period of 2016, Centaline Property data shows.
Second-tier cities including Wuhan in Hubei Province, Hefei in Anhui Province and Nanjing in Jiangsu Province, have led the transactions, with each of their land-sales revenues exceeding 2 billion yuan.