E-Paper
Resale-home transactions 39% higher in Jan than Dec in China : Report
The property sector, which accounts for a quarter of China's economy, was badly hit last year as many developers were unable to finish building projects that led to mortgage boycotts by some buyers.
Average daily resale-home transactions in China's 50 cities in the first half of January were 39% higher than in December, reflecting early signs of recovery in the property sector, according to a survey by Beike Research Institute.
The number of home buyers' visits to housing showrooms and home sales, which represent demand, saw a significant pick-up, said the institute.
Also Read | Office space demand enjoys 'strong' recovery in 2022; Bengaluru tops list: Report
Average daily buyers' visits in the 50 cities monitored by the firm was 22% higher in the first half of January than the previous month.
The property sector, which accounts for a quarter of China's economy, was badly hit last year as many developers were unable to finish building projects that led to mortgage boycotts by some buyers. Lockdowns and movement measures to control the spread of COVID-19 also hurt buyer sentiment.
The central bank last week said that for cities where the selling prices of new homes fall month-on-month and year-on-year for three consecutive months, the floor on mortgage rates can be lowered or abolished for first-time home buyers in phases.
Also Read | About 98,000 housing units remain unsold in Delhi-NCR market at 2022 end: Report
China is also planning to relax restrictions on borrowing for property developers by dialling back the "three red lines" policy unveiled in 2020 to tackle property developers' unbridled borrowing, Bloomberg News reported.
A slew of property support measures for buyers and property developers in recent weeks, coupled with Beijing's abrupt reopening last month cheered the market, but continued sluggish demand still constrains the recovery.
"The upward trend in market expectations is largely certain with both supply-side and demand-side policies being implemented," said the institute.
"Demand that was suppressed by the COVID-19 is expected to release at an accelerated pace, and the real estate market in core cities likely to see an upturn in the first quarter of 2023."
