China Daily | December 3, 2024
Amid China's dedicated efforts to fine-tune housing policies, the market for secondhand homes in a number of major cities has seen a notable surge in November, with some recording the highest sales volumes during recent times, suggesting a gradual improvement in the country's property sector, analysts said.
As the effects of optimized housing policies continue to unfold, consumer sentiment and investor confidence will be further bolstered to better underpin the market's overall stabilization and recovery and facilitate the annual growth target of the world's second-largest economy, they added. Secondhand housing sales in Shenzhen, Guangdong province — China's technology hub — came in at 8,500 units in November, the highest figure in the past 46 months, according to data from the real estate agency Centaline Property.
Shanghai saw its pre-owned housing sales reach 27,050 units in November, marking the highest transaction volume in the past 44 months, according to housing information platform anjuke.com.
Similarly, according to data from the Beijing Municipal Commission of Housing and Urban-Rural Development, the city's secondhand housing sales reached 18,763 units in November — the highest level in nearly 20 months.
In addition to secondhand housing sales, the China Real Estate Information Corporation reported that new home sales in 30 key cities monitored last month also reached a new high so far this year, rising 3 percent from the previous month and 20 percent year-on-year.
The policy measures introduced recently to reduce the financial burden on and ease access for homebuyers have been instrumental in the revival of housing transactions and the broader recovery in the property market, said Yan Yuejin, deputy director at E-house China R&D Institute.
In recent weeks, policymakers in various cities such as Beijing, Shanghai and Shenzhen have announced preferential tax policies, with a particular focus on lowering transaction costs for homebuyers.
The new measures came after a raft of policy changes for the property sector at the end of September, including a cut in the minimum down payment ratio to 15 percent for all housing categories and a relaxation in home purchase restrictions.
Chen Wenjing, director of market research at the China Index Academy, noted that down payment requirements and mortgage interest rates have reached their lowest levels on record, while home purchase restrictions in many cities are at their most relaxed stage since being implemented.
The more accommodative policies have clearly anchored consumer sentiment and unlocked substantial pent-up housing demand, Chen said.
Although housing transactions are likely to grow in top-tier cities in the coming months, the picture is more mixed in smaller cities.
For the majority of smaller inland cities, real estate activity is still awaiting a boost, according to the report from the China Real Estate Information Corporation.