Home RSS
Real Estate

Stabilization on the Chinese real estate market

Industry Leads Magazine
Stabilization on the Chinese real estate market - China - property market

For the first time in eight months there are signs of slow stabilization on the Chinese real estate market. After eight months of decline China’s home prices were stabilized in June. The stabilization is a result of pro-growth government economic policies and reforms.

The real estate’s spinning-wheel

The National Bureau of Statistics has recently published the data revealing Q2 GDP growth of 7.6 percent from a year ago, which is considered the slowest expansion in more than three years.  The statistics bureau’s month-on-month data showed that real estate market in two main cities in China, Beijing and Shanghai, have noted the increase of home prices. Accordingly, Beijing’s gained 0.3 percent while Shanghai’s rose 0.2 percent. However, it is essential to underline that the Beijing as well as Shanghai noted price drops of 1 percent and 1.5 percent, respectively.

In turn, home prices nationwide were down 1.5 percent in June on a year earlier, according to the data.

However Ma Xiaoming, a senior statistician at the National Bureau of Statistics, said: “With home transactions rising, home prices in some cities have seen a month-on-month increase.” Shanghai and Guangzhou had a month-on-month gain of 0.2 percent, thus it was the first price increase since June last year. New home prices decreased in 57 cities in June, versus 54 in May.

Certainly, the aforementioned data could be used as evidence confirming a clear trend since the beginning of 2012 that a declining number of the 70 cities, which were analyzed by the National Bureau of Statistics, have seen continuous home price falls.


Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.