Thursday, October 22, 2015

The Second House Market in China Rises

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Improved secondary home sales not only happening in Hong Kong, but also in Beijing and Shanghai, China. (Read: House Secondary Market Rises in Hong Kong)

Improved secondary home market transactions in the region last month triggered strong local government support to industrial property and a series of supporting policies.

"Sentiment home buyers began to rise due to a number of supporting policies such as the five cuts in interest rates and home loans both imposed the same as the first home for the buyer has to pay off the first loan," explains consultant Century 21 China Real Estate to the South China Morning Post (SCMP), Tuesday (01/19/2016).

The requested average price for homes in Shanghai jumped 2.2 percent in December and making it the largest increase in the last two years.

While in Beijing, the increase in house prices of 0.7 percent, 0.01 percent higher than in November.

Such improvements show stretching properties in Shanghai and Beijing in recent months amid a slowdown in market conditions as a result of oversupply.

Index soared

Secondary house price index is based on the data of Century 21 puts Beijing in number 167, up two positions from November.

While in Shanghai, secondary home price index also rose from position 154 to position 157.

Secondary home transactions in Beijing rose 29.5 percent in November to number 25 202 units, while transactions in Shanghai grew 11.6 percent to 44 546 units figure.

The People's Bank of China cut interest rates five times in the past year to attract home buyers back into the market.

Therefore, many people hope that the government would cut interest rates to sustain the recovery of the housing market in order to support economic growth.

"The market will be more stable this year after a full realization of the demand last year. At the same time, the momentum of the market tend to be quieter. We also expect growth in prices and transactions in Beijing and Shanghai could be more rational and stable this year," said consultant Century 21.
In annual terms, prices in the secondary market rose 5.1 percent to 43 647 yuan per square meter, or USD 92.7 million in Beijing and jumped 10.8 percent to 37 956 yuan per square meter, or USD 80.6 million in Shanghai.