New | Beijing and Shanghai secondhand home sales get boost from supportive policies
Market expected to be more stable in 2016 as sentiment calms
Transactions in the secondary home markets in Beijing and Shanghai picked up last month, driven by the government’s strong signal to support the industry and a series of favourable policies, the latest SCMP-Century 21 index showed.
“Homebuyers’ sentiment was boosted towards the end of the year by a number of supportive policies such as five interest rate cuts and mortgages on second homes being treated in the same way as the first ones as long as the buyer has paid off the first loan,” said consultancy Century 21 China Real Estate, partner of the South China Morning Post for the monthly index.
The average asking price for existing homes in Shanghai jumped 2.2 per cent month on month in December, the biggest increase in two years. Beijing saw a rise of 0.7 per cent, extending the 0.01 per cent gain in November.
“Demand in Shanghai got released at the end of the year as both the rates of commercial mortgages and the housing provident fund loan hit historic lows,” Century 21 said. “Transactions for large units appear to be on the rise after the government allowed families to have a second child.”
The SCMP-Century 21 secondary home price index last month climbed to 167 from 165 in November in Beijing and was up to 157 from 154 in Shanghai.