With a major emphasis on the realty segment by the central authorities in China, the country’s real estate market is likely to be stabilized this year. Focusing on adopting an effective mechanism for ‘one city, one policy’, a meeting was recently conducted by a Political Bureau of the Communist Party of China (CPC) Central Committee. It further asserted that housing is for living, not speculation.
“This suggested stable land prices, stable house prices, and stable price expectations should prevent the property market from drastically rising and falling, and this will be the main regulatory target for the future,” said Shaun Brodie, senior director and head of occupier research for Cushman and Wakefield in China.
Owing to the robust efforts and contribution made by the central authorities and local governments, there has been a stability in terms of the sales and sales prices in the first quarter, as per a research conducted by the Ministry of Housing and Urban-Rural Development and the Development Research Center of the State Council.
Statistics show that a decline of 0.9% year-on-year in the total gross floor area traded from January to March.
According to Yao Yao, head of research for JLL China, “Along with our economy shifting from fast growth into smart growth, the residential sector is also developing in the same direction of stability.”
Regardless of a slight increase in third-tier cities, new home prices in first- and second-tier cities have been constant during the Jan-March period, Yao added.
“Research shows the Chinese home market is stabilizing under multiple measures, and people’s home purchasing demands are becoming rational,” stated Yang Yuechen, director and head of research at Knight Frank, a real estate consultancy.