The real estate market remains optimistic this year
Expected high economic growth, urbanization, first-time home buyers, and lifestyle desires will offset the impact of stricter real estate regulations.
According to industry insiders, even after the “May 1st” holiday, despite the tightening of house purchase rules demand is expected to remain strong for the rest of this year. But China’s residential real estate market will remain optimistic.
They said, however, this may still pose a risk to those who enter the market purely for investment or speculative purposes.
Tang Hua, senior director of Savills China and head of China’s residential sales. In late April that she expects that during the five-day Labor Day holiday. The number of visits to real estate by potential home buyers will increase.
“From experience, we believe that potential home buyers will make a visit to the real estate as part of their holiday plans… (and) developers can also arrange promotions to attract buyers and secure transactions.”
Since the second half of last year. The residential real estate market in major cities in China has rebounded rapidly because the spread of COVID-19 has been better controlled in China.
In the first quarter of this year, national residential property investment increased by nearly 29% year-on-year to RMB 2.06 trillion.
In terms of total construction area, housing sales increased by 68% year-on-year; the National Bureau of Statistics said that new housing sales revenue soared by 95.5%.
Research Director Sheng Xiuxiu said: In the 20 major cities tracked by Jones Lang LaSalle. The transaction volume of new residential properties maintained a good momentum. A year-on-year growth of 98% in the first quarter and an increase of 32% from the same period in 2019. Jones Lang LaSalle China The residential sector.
The performance of the four top cities is outstanding.
Sheng said that their total sales of new homes in the first three months reached approximately 10.7 million square meters. more than twice the level of the same period last year and an increase of 96% over the same period in 2019.
Liu Aihua, a spokesman for the National Bureau of Statistics, said: “Investment and sales both achieved double-digit growth. This is due to the low base in the same period last year.”
Various regions and relevant departments are paying special attention to this new situation, and by following the government guidelines. That housing is for living, not for speculation, they have taken some effective measures to stabilize land prices, housing prices and market expectations, Liu said.
However, Xie Chen, head of CBRE’s China Research Department, said that given various signs. Such as the strengthening of financial regulations, tightening restrictions on housing transactions. Greater control over land supply, in the long run, this High-digit growth may not be sustainable.
Sheng said that this fine-tuning is to eliminate speculation and better protect the company’s needs, whether at the national or local level.
Lu Wenxi of the Centaline Shanghai Research Center said that in clusters such as the Yangtze River Delta and Beijing. Tianjin-Hebei and the Pearl River Delta, the residential market in hotspots and hotspot cities is likely to remain stable. One year, while other cities may see demand cool down.
Since the beginning of this year, new real estate-related policies have targeted the land. The market, credit measures, purchase restrictions and sales requirements.
Xu Xiaole, chief market analyst at Baker Research Institute, said the goal is to fill the loopholes in existing practices and end speculation in the national real estate market.