The mainland's residential housing sales jumped last month as homebuyers shrugged off property curbs amid expectations that a slowing economy would force the government to ease some of the restrictions.
New home sales in June amounted to 531.3 billion yuan (HK$652.1 billion), up 41 per cent from the previous month, according to the National Bureau of Statistics. The surge in sales value is interpreted by industry officials as a precursor to a turnaround in the property sector.
The statistics bureau didn't provide a month-on-month comparison in the report on real estate investment and sales.
The monthly figures were based on the difference between the data for the first half and the first five months. The bureau said home sales between January and June actually fell 6.5 per cent from the same period a year ago. The mainland witnessed a spurt in home-buying last month amid speculation that Beijing would ease curbs on the property sector.
Premier Wen Jiabao last week pledged to maintain the property curbs, ordering local governments not to waive existing policies aimed at capping prices. But would-be homebuyers, after a year of the austerity measures that were introduced to cool the once-hot property market, seemed to think otherwise. With the economy slowing, many now believe it is the right time to buy as the curbs could soon go and prices jump.
'The strong sales were driven by pent-up demand,' said Albert Lau, managing director of Savills China. 'There is a consensus among homebuyers that housing prices would jump once the curbs are eased,' he said, adding that it is just a matter of time before the tightening measures are lifted.