China’s real estate market is on the mend, with transactions in major cities surging following a number of policies introduced late last month to stimulate demand and boost confidence.
Shanghai’s secondary market has recorded more than 20,000 transactions so far this month, an increase of 52.3% month-on-month, according to data released by the official platform Shanghai Real Estate Trading Center on Sunday. 1,301 deals were completed on Saturday alone, the second highest single-day figure this year.
According to a report released by Centarin Property Agency last week, 11,699 existing homes were sold in Beijing from October 1 to October 24. The agency expects the total number of transactions to exceed 16,000 this month, the highest level in 19 months.
“The recovery in housing sales in major cities signals a broader recovery in China’s housing market,” said Yang Yuejing, deputy director of the Shanghai-based Ehouse China Real Estate Research Institute. “This also reflects a recovery pattern in which upper-tier cities recover faster than lower-tier markets.”
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The strong numbers come thanks to the “bazooka” of policies unleashed by Chinese authorities in September to support the economy and real estate market, as well as the deleveraging that began at the end of 2020 to rein in high levels of debt. After the campaign, prices have fallen for 16 consecutive months. developer.
