Annual Report on Development of Housing Market in China: Housing Price Read to Rebound, Investment Still Recessionary
· Abstract
· Correct
· Shop
· Share
· Recommend
·
· Font
[people.com.cn July 23] (Journalist: Li Ye) Annual Report on Development of Housing Market in China (2012) Interim, published by the housing research group of National Academy of Economic Strategy of CASSon July 23, says, as currency environment is loosening, housing regulation and control is becoming weak and housing price expectation is changing, the housing trading volume is increasing per month, the housing price shows signs to rebound, and the housing price in first-tier cities is gradually increasing. But residential development investment still stays recessionary because of its comparative delay.
The report says the housing trading volume was recovering per month in 2012, and started to expedite this trend since June. Although the trading volume rebounded, the current commercial housing inventory still kept a comparatively high level, as the housing volume developed in the earlier stage was large and not completely consumed yet. Meanwhile, when the trading volume started to rebound, the housing price showed signs to rebound. The housing price in first-tier cities was gradually increasing. Large inventory, short budget and uncertain trend made real estate developers quite conservative in pricing. Most of them raised their prices gradually per month, waited for the market response and the adjusted their strategies correspondingly, so they were less likely to be stuck in bad market or had broken capital chain just because they overpriced their houses than the surrounding houses. Even though, the gradual rise of housing price was not marginally, but a little dramatically. The prices of some downtown houses buildings even rose to a new record.
The report says, the resident market started to rebound, but the developers still held large commercial house inventory, and the commercial resident development investment was recessionary, so it’s difficult to re-boom in short term. The land market showed some signs of resuscitation, most developers were quite cautious in buying lands, but some developers bought some lands at low prices in order to expand their market, and heated price battles reemerged for a few hot lands on market.
The report also says regional markets were quite different that rebooming constructions and unfinished buildings were present at the same time. On one hand, the housing markets in first-tier cities like Beijing, Shanghai and Guangzhou started to rebound, developers roses the prices of new commercial houses, the prices of second-handed houses rose dramatically, especially some second-handed houses in downtowns hit a historical high. On the each hand, in some cities where the housing market was far from rebound, mostresidential buildings were almost unfinished as they were unmarketable for long, especially in Inner Mongolia and Zhejiang provinces where the housing market were overheated and oversupplied in the earlier stage. In Beijing where the market was on the trend of rebound, some buildings even developed by brand developers were doubtfully unfinished due to bad sales or short capital.