No relief yet for China’s housing market with excess supply in secondary market, weak price guidance in new projects
- China remains ‘not too concerned’ about the property sector’s downturn, given the negative policy tone at ‘two sessions’ gathering: Nomura
- China Overseas Land recently priced a new Beijing project below the going rate in the secondary market in the same area, agents say
Listings of lived-in homes in 14 major mainland cities rose 57 per cent in February from a year earlier, according to a report published by online property agency Zhuge Zhaofang on March 7. The number has risen for 18 consecutive months from year-earlier data, it added.
The trend is consistent with data on the broader residential market. New listings of second-hand homes in 100 cities rose by 4.82 million units per month on average last year, according to data compiled by 58Anjuke, an online real-estate brokerage. That worked out to a 12 per cent jump on average over 2022, it added.
The oversupply situation may not ease soon without a stronger policy intervention. China remains “not too concerned” about the property sector malaise, analysts at Nomura Holdings said in a March 10 report when assessing the tone at the “two sessions” in Beijing. The industry fundamentals will remain under pressure with limited policy support, the Japanese brokerage said.
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“A surge in the listings of second-hand homes in recent years have affected prices of new homes, especially in tier-one cities,” said Guan Rongxue, a senior analyst with Zhuge Real Estate Data Research Centre, a unit of Zhuge Zhaofang. Sales of used homes will usurp demand for new homes, she added.