Date
24 September 2017
Home sales in major Chinese cities during the Labor Day holiday were sharply lower compared to the same period last year. Photo: Bloomberg
Home sales in major Chinese cities during the Labor Day holiday were sharply lower compared to the same period last year. Photo: Bloomberg

China home sales disappoint during Labor Day holiday

Contracted home sales volume in 54 major Chinese cities during the Labor Day holiday amounted to 9,887 units, down 32.5 percent compared to the same period last year, Economic Information Daily reported Monday, citing data from property agency Centanet.

The four biggest cities, namely Beijing, Shanghai, Guangzhou and Shenzhen, saw their contracted sales total 1,046 units during the three–day holiday, marking a slide of 40 percent over the year-earlier period, according to Centanet.

Data from Beijing city’s housing authorities showed only 169 units were sold during the period, down 78.9 percent year on year and marking the worst Labor Day holiday sales since 2008. Meanwhile, only 49 units were sold in Shenzhen, down more than 60 percent, while Shanghai and Guangzhou saw sales of 423 and 405 units respectively, basically unchanged from a year earlier.

An industry insider said the steep fall in sales in Beijing suggests that the market is on a downtrend and that the buyers are now at an advantage.

Mao Daqing, vice president of real-estate giant China Vanke (000002.CN), was quoted as saying that the current adjustment in the housing market cannot be attributed only to policy curbs. Headwinds may persist for a long time, he said, without elaborating.

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