Date
25 May 2017
Shenzhen saw home sales jump 148.4 percent in May from a year ago, the highest growth rate among major Chinese cities. Photo: Bloomberg
Shenzhen saw home sales jump 148.4 percent in May from a year ago, the highest growth rate among major Chinese cities. Photo: Bloomberg

China home sales growth hits six-year high on stimulus measures

Chinese home sales in May saw the highest growth in six years for the same period after a series of stimulus measures rolled out by the government encouraged more buyers, China Daily reported, citing data from E-house China R&D Institute, a real estate services company.

New-home sales in terms of floor space in 30 cities monitored by E-house China rose 15.5 percent in May, compared with the previous month, the newspaper said. Sales jumped 34.9 percent from a year earlier.

Sales growth was recorded in 27 of the 30 cities, according to the report.

First-tier cities saw sales surge 82.7 percent in May from a year ago, after rising 59.2 percent in April. Year-on-year sales growth was 25.3 percent in second-tier cities and 32.1 percent in third-tier cities.

Shenzhen led with a year-on-year growth of 148.4 percent, followed by Shanghai with a 118.3 percent rise.

Average new home price in 100 cities in May rose 0.45 percent from the previous month to 10,569 yuan (US$1,706) per square meter, according to China Index Academy, the research unit of SouFun Holdings Ltd.

Except a small uptick in January, the price index had been declining for the past 12 months.

Since the end of March, the government has rolled out a number of measures to perk up the property market, including greater support for second-home purchases as well as cuts in the interest rate and reserve requirement ratio for banks, the newspaper said.

More than 100 cities have adjusted their housing provident fund policies, making it easier for residents to withdraw the fund to buy homes.

In Beijing, for example, housing provident fund members are now allowed to withdraw a maximum of 1.2 million yuan for their first home and up to 800,000 yuan for their second home.

In the previous policy, a maximum per capita living space was set, beyond which members could not borrow from the fund.

“The rising sales show that people are now more willing to purchase homes,” E-house China analyst Yan Yuejin was quoted as saying.

“Due to rising volatility in the stock market, many investors are transferring their money to property. It is expected that June sales will also be at a high level, especially in the largest cities.”

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CG

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