‘Golden week’ property sales plunge in major Chinese cities amid slowing economy, tight mortgage conditions
- Sales of new homes in Beijing dropped to their lowest level since 2014 during the week following the National Day holiday
- The seven-day holiday is traditionally a peak period for home sales
Property sales in China’s major cities saw one of their worst “golden week” holidays in years, as buyers held back amid a slowing economy and tight restrictions on mortgage loans.
Sales of new homes in Beijing dropped to their lowest level since 2014 during the week following the National Day holiday, according to data from the property information portal Zhuge.com.
By area, sales of new homes in Shanghai plummeted 86 per cent to 5,000 square metres, while the capital saw a 92 per cent plunge to 2,000 sq metre, according to data from Centaline Property.
Traditionally a peak period for sales, the seven-day holiday drew little interest from buyers who were unwilling to pursue big investments at a time when the national economy faces a slowdown caused by the trade war with the United States. Buyers’ appetite was further depleted by banks tightening mortgage loans and Beijing’s tougher measures to curb home prices.
Just 190 transactions were recorded in the primary residential market in Beijing during the golden week, down 19 per cent from 2018.