20 October 2018
Property prices in top Chinese cities could moderate further this year. Photo: Bloomberg
Property prices in top Chinese cities could moderate further this year. Photo: Bloomberg

China first-tier cities see further fall in property deals

China’s first-tier cities recorded a further slide in property transactions in the first half of June, reflecting the mounting headwinds faced by the sector, National Business Daily reported Monday.

Transactions in Beijing and Shenzhen fell 51 percent and 64 percent year-on-year respectively in the first half of this month, consolidating the trend of decline, the report said, citing data from property research house CRIC.

The data released by National Bureau of Statistics (NBS) was in contrast to some figures released recently by the Guangzhou land and housing authority.

NBS data showed that property price growth in Guangzhou was down to zero in May from April, while Guangzhou Land and Housing Bureau has said the city’s property prices rose 2.1 percent month-on-month, hitting a fresh high for the third consecutive month, the report said.

Huang Tao, a manager with property agency Centaline Group, was quoted as saying that the NBS data is closer to the real market situation. Guangzhou’s statistics are based on online signed agreements data, which is usually distorted as most local property developers adopt “dual contracts” to avoid pricing restrictions by regulators, he said.

Li Wenjiang, a property analyst, said prices in first-tier cities are expected to remain weak until the end of this year.

Further, the government may roll out measures to speed up the construction of subsidized housing. The increased supply will put more downward pressure on prices, the China Securities Journal reported.

Chen Zhenggao, party secretary of the ministry of housing and urban-rural development, recently launched investigations in Hunan province in central China, his fourth stop in a tour prior to launch of new action for shantytown renovation, the report said.

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