Two studies released last week pointed to a rebound in China’s residential real estate market, with real estate agents in 80 percent of 40 cities polled reporting strong sales of new homes over the previous week.
The first study, by China Real Estate Information Corp showed an increase in the volume of space sold, as well as a rise in average prices. The most dramatic figures came from Nanjing, which saw a 200 percent year-on-year rise in house sales between June 18th and 24th.
In Shanghai average housing prices for newly developed properties in the first 17 days of June hit 23,141 yuan ($3,640) per square meter – the highest for the past 18 months, according to the report. Among the 56 properties monitored by CRIC in Shanghai, 30 reported price increases while 26 reported price drops. In general, the study indicated greater interest from upper-income buyers in high end properties, which helped drive up the average price paid per square metre.
The second report, from the China Index Academy, found that 35 of 54 major cities surveyed showed year-on-year sales increases during the week of June 17th to 24th. The Academy’s study found that as many as 57,000 apartments in 54 major cities were sold between June 17 and 24.
In addition to the two reports, the May results of China’s four leading real estate developers were also up for the month.
According to their lastest financial reports, Poly Real Estate, China Vanke, Evergrande and China Overseas Holdings Ltd had sales of RMB 10 billion, suggesting a warming market after a year long chill.
Top seller Poly’s sales in May grew 45 percent over a year earlier to hit RMB 10.77 billion, slightly higher than that of China Vanke. It was the first month in 2012 that Poly had revenues of more than 10 billion yuan.