Over 90pc of cities see rally in house sales during first six months
1.08 trillion yuan worth of land also sold during the period, a 34 per cent rise
Over 90 per cent of Chinese cities posted a rally in home sales in the first half of the year, according to a leading market monitoring agency, with second-tier cities taking over from first-tier as the main drivers.
In a new report published by China Real Estate Information System, sales turnover in first-tier cities continued to flag since rallying at the end of last year and the start of this year.
Thirty-two of the 35 cities monitored by the system saw year-on-year rises in housing sales during the half, with second-tier cities leading the way
Sales in Huizhou, near Shenzhen, surged 113 per cent in the period compared with a year earlier, the largest rise. Tianjin, Nanjing and Yangzhou also saw their sales more than double.
In contrast, sales numbers in Shenzhen tumbled 23 per cent, as an 82 per cent year-on-year price surge priced many potential buyers out of the market.
Sales in Beijing declined 10 per cent after a 15 per cent price rise.
Suzhou, another second-tier city, saw a 43 per cent price gain in the first half, followed by Nanjing (+35 per cent) and Dongguan(+32 per cent).
“On the one hand, risk is accumulating in hot-spot cities and they face increasing correction pressure. While on the other, overall housing inventories remain substantial,” the agency said.
The rally in second-tier sales also pushed up competition for land.
During the period, 654.7 billion yuan worth of land was snapped up by developers, a 78 per cent rise from a year ago.
In all the 300 Chinese cities measured, a combined 1.08 trillion yuan worth of land was sold, a 34 per cent rise. But most notable, for the first time, second-tier cities edged out first-tier rivals in terms of land sale value.
Eastern Hangzhou topped the list, with 81.7 billion yuan generated from land sales in the half year, four times that of the same period last year. Nanjing and Suzhou ranked second and third.
Beijing and Shanghai’s land sale revenue fell by 45 per cent and 11 per cent, respectively, as both cities roll out less land for sale.