Last year, China’s property market remained stable
In a poll conducted by Reuters, it was revealed that China’s property market is expected to rebound later in the year. This, after the property sector had faltered last year as Beijing launched a campaign that disrupted project deliveries and stagnated buyer sentiment.
Last year, China’s property market remained stable, with record-high sales of commercial residential complexes, lower housing costs, and an influx of investment in property development. It also dealt with sporadic COVID-19 outbreaks that affected factory output and consumption.
Average home prices are estimated to fall 1 percent during the first half of the year while home prices are expected to rise 2 percent throughout the year.
“Home prices are likely to rise if curbs are relaxed,” said Li Qilin, chief economist at Hongta Securities. “Property transactions in first- and second-tier cities, supported by their economic and demographic advantages, will be remarkably better than third- and fourth-tier cities,” Li added.
In terms of demand, house sales are expected to decline 14 percent in the first half, down from a 16 percent dip in November’s poll. For the entire year, sales are predicted to drop by 7.5 percent.
The first half of this year should see a decrease of 2 percent in real estate investments, while the whole year should see a gain of 1.5 percent. The pace of property investment slowed to 4.4 percent in 2021, representing the slowest growth in 17 months, while the sales of real estate firms by area rose 1.9 percent.
Global Times shared that property development investment totaled CNY14.8 trillion (USD2.34 trillion) — an increase of 4.4 percent year-on-year. Residential building investment went up by 6.4 percent, which was 1.5 percentage points more than the overall fixed-asset investment.
According to Wang Menghui, head of the Housing and Urban-Rural Development Ministry, China’s housing demand has great potential as it is in the middle of rapid urbanisation, with the overall population and number of families in cities and towns continuing to rise.
The Property Report editors wrote this article. For more information, email: [email protected].
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