Property turnover drops in China
Thursday, 8 November 2007
October has traditionally been a month for strong real estate sales in China. But that hasn't been the case this year, with turnover dropping in Beijing, Shanghai and Guangzhou. Many see this as a result of effective policies, one of which saw the central bank raise the down payment required from second home buyers.
Statistics show sales of new properties dipping by around 20 per cent in Beijing between September and October. Meanwhile, there was little change in sales of second-hand properties between the two months. But looking back to 2006, sales figures have actually decreased, compared to a 10 per cent surge from the same period last year.
Jin Yusong, Vice General Manager of Beijing Homelink Real Estate said "Traditionally October is a good month for rises in property turnover. But this October, turnover stayed the same as that in September. It seems the government's new policy has had a big influence on the market."
Shanghai and Guangzhou are seeing similar situations. In Shanghai, new property transactions dropped by around 20 per cent in October compared to the previous month, while second-hand housing sales fell by 30 per cent. Guangzhou saw its new property turnover drop 18 per cent and second-hand property turnover down almost 50 per cent. Industry insiders believe that the hike in the down payment for second home buyers is making buyers more cautious and has helped curb speculation in the market.
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CCTV
Statistics show sales of new properties dipping by around 20 per cent in Beijing between September and October. Meanwhile, there was little change in sales of second-hand properties between the two months. But looking back to 2006, sales figures have actually decreased, compared to a 10 per cent surge from the same period last year.
Jin Yusong, Vice General Manager of Beijing Homelink Real Estate said "Traditionally October is a good month for rises in property turnover. But this October, turnover stayed the same as that in September. It seems the government's new policy has had a big influence on the market."
Shanghai and Guangzhou are seeing similar situations. In Shanghai, new property transactions dropped by around 20 per cent in October compared to the previous month, while second-hand housing sales fell by 30 per cent. Guangzhou saw its new property turnover drop 18 per cent and second-hand property turnover down almost 50 per cent. Industry insiders believe that the hike in the down payment for second home buyers is making buyers more cautious and has helped curb speculation in the market.
..........
CCTV