China’s property market is on the mend, with transactions in the top cities surging following a number of measures introduced late last month to stimulate demand and shore up confidence.
The secondary market in Shanghai has recorded more than 20,000 transactions so far this month, a month-on-month jump of 52.3 per cent, according to data published by Shanghai Real Estate Trading Centre, an official platform, on Sunday. On Saturday alone, 1,301 deals were transacted, the second-highest daily figure this year.
In Beijing, 11,699 pre-owned homes were sold between October 1 and 24, according to a report published last week by Centaline Property Agency. The agency expects overall transactions this month to cross 16,000, a 19-month high.
“The rebound in home sales in major cities signals a broader recovery in China’s housing market,” said Yan Yuejin, vice-president of the Shanghai-based E-House China Real Estate Research Institute. “It also reflects a recovery pattern, where higher-tier cities experience a rebound earlier than lower-tier markets.”
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The strong numbers come on the back of a policy “bazooka” unleashed by Chinese authorities in September to bolster the economy and the property market, which has seen prices fall for 16 consecutive months following a deleveraging campaign launched in late 2020 to rein in heavily indebted developers.