More mainland homebuyers are upgraders, will accept higher prices, poll shows
To gauge the buying demand of mainlanders for domestic and overseas residential property, the South China Morning Post and Century 21 China Real Estate, a property consultancy, have partnered on a quarterly sentiment survey.
In the second survey, conducted during the second quarter of this year in Beijing and Shanghai, 565 Century 21 clients were interviewed, up from 350 in the first quarter.
The latest survey showed that a higher proportion of the potential homebuyers were upgraders who owned a home and wanted to trade it for a larger one. They could also accept a higher price.
Home transactions in the secondary market dropped sharply in the first half, while supply increased, pushing down asking prices.
While an increasing number of wealthy mainland families are buying homes abroad, the survey showed that interest in doing so was not particularly strong among ordinary households.
DOMESTIC DEMAND SURVEY
Do you plan to buy a home in the next three months?
Yes: 4 per cent (against 6 per cent in the first quarter). No: 96 per cent.
What is the price you can afford and what is the price of projects you are looking at now?
Forty-seven per cent (66 per cent in the first quarter) said they could afford a price less than 30,000 yuan (HK$37,500) per square metre, while 48 per cent (63 per cent in the first quarter) said they were looking at projects below that price.
Do you own a home, and do you plan to sell it in order to buy a new one?
Sixty-three per cent (49 per cent in the first quarter) said they owned a home, and 21 per cent (8 per cent in the first quarter) said they would sell it to buy a new one.
OVERSEAS DEMAND SURVEY
Do you plan to buy a home abroad in the next three months?
None (against 1.3 per cent in the first quarter) said yes.
Why would you buy abroad?
Forty-four per cent (39 per cent in the first quarter) said if they were to buy a home overseas, it would be because of their children's education, while 12 per cent (35 per cent in the first quarter) said it would be for emigration and 44 per cent (26 per cent in the first quarter) said it would be for investment.
What is your main concern about buying abroad?
Thirty-six per cent (57 per cent in the first quarter) said policy issues would be their main concern, while 39 per cent (29 per cent in the first quarter) would care most about price.