2014-04-24

Beijing Villa Sales Rebound Strongly in March as Luxury Property Remains Hot

It's the Indian Summer for the villa market.

Instead of heating up, property sales cool down
The only residential sector not affected so far is luxury homes.

According to international real estate consultancy firm Jones Lang LaSalle, capital values for luxury apartments and villas in Beijing rose by 6.6 percent and 11.9 percent quarter-on-quarter, respectively, in the first quarter of 2014.

Despite an increase in inventory and lower transaction volumes, the market remains undersupplied, further driving capital value growth. Moreover, newly launched projects have achieved higher-than-market prices, which has further contributed to the rise, according to JLL research.

"It took one of our clients only five days to decide to purchase a 23 million yuan apartment in our luxury projects along the eastern Third Ring Road," said a sales manager with Hongkun Real Estate Co Ltd surnamed Chen.

Chen said the extremely limited supply of high-end projects in that area was the key reason for the client's quick decision, despite the fact that the unit price exceeded 100,000 yuan per sq m.

"We may further increase the sales price," he added. Hongkun has two luxury projects in Beijing.

Villa transactions (gray bar), average price per sqm (red line)

Beijing

Shanghai

Shenzhen

Guangzhou

Full report PDF File (Chinese) covering First Tier high end properties:
一线城市高端物业 投资包好 2014年4月

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