Property sales up in almost 90pc of Chinese cities

Property sales have risen in almost all Chinese cities this year, reveal new figures.

Figures from China Real Estate Information System show that sales in 32 of 35 cities monitored by the firm saw sales climb in the first six months of the year. The increase in turnover since January 2016 built on the momentum at the end of last year, when sales began to rally.

Now, second-tier cities have overtaken first-tier cities to become the main drivers of activity, with sales in Huizhou surging 113 per cent compared to the same period a year earlier. Tianjin, Nanjing and Yangzhou all saw sales more than double.

Sales in Shenzhen, however, dropped 23 per cent, due to a price rise of 82 per cent deterring buyers. Sales in Beijing also fell 10 per cent, following a 15 per cent price rise.

“On the one hand, risk is accumulating in hot-spot cities and they face increasing correction pressure. While on the other, overall housing inventories remain substantial,” said the report.

The improvements in second-tier markets also fuelled competition for land, with 654.7 billion yuan worth of land bought by developers, up 78 per cent year-on-year.

South China Morning Post

Photo: Faungg’s photos