Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Housing Discounts Spread to Top Cities as Property Market Slows

2014/04/02 by Michael Cole Leave a Comment

Vanke Beijing

No fun for Vanke with low-priced Beijing project

China’s residential real estate market continued to slow in March as price increases slackened and the number of sales fell in many cities across the country. The market also reported more cases of developers discounting homes to reduce inventories, even in the traditionally stronger first-tier markets.

According to a story in the Wall Street Journal, housing prices rose an average of 10.04 percent nationwide last month compared to the same period in 2013, down from a rate of increase of 10.79 percent in February and 11.1 percent in January.

Transaction Volumes Dropping Off

Perhaps of greater significance to the market, the number of homes being sold appears to be dropping precipitously, which could put significant pressure on developer cashflows and lead to further discounts on home sales.

According to Century 21, the number of second-hand homes sold in China’s first-tier cities dropped more than 50 percent year-on-year in the first quarter.

The real estate agency indicated that in Beijing, second-hand home sales were off 65 percent and new home sales were down 44 percent during the first three months of this year. The situation in Shanghai was similar, with transactions decreasing 56 percent in the pre-owned home market and 40 percent in the new home market.

Biggest Communities Now Seeing Discounts

The slowdown in demand for housing appears to already be having an impact, even in some of the nation’s biggest cities.

The Journal story reported that China Vanke, the nation’s largest developer by revenue, brought a new development to market near Beijing’s sixth ring road with apartment prices up to RMB 3000 lower than market expectations.

The Global Times also said today that several housing projects in Guangzhou have also been lowering home prices to encourage sales. The reports of discounts in China’s largest cities follow a trend that began in Hangzhou, Changzhou and other second and third-tier cities during February.

First Tier Cities Still Leading Price Increases

Despite the discounts, the situation in China’s first tier cities may actually be among the nation’s most encouraging.

The China Index Academy data showed that Beijing recorded the largest rise in new home prices among the 10 biggest Chinese cities in March, with the average cost increasing 27.13 percent year-on-year to RMB 33,069 per square metre. In Guangzhou rates were up 20.48 percent year-on-year and in Shenzhen housing costs were up 19.02 percent.

Despite being China’s commercial capital, Shanghai had the slowest housing market of any of the country’s first-tier cities in March with the average cost of a new home rising 14.89 percent from a year ago to RMB 32,339 per square metre.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: Beijing, Beijing home price, china real estate developer, crebrief, Guangzhou home price, Shanghai home prices, Shenzhen

Data centre forum 2022 Jumbo

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

REIT forum 2022 Web banner

MTD TV

core panel screenshot2
Allianz, KKR, Gaw and Colliers See Top Asia Office Markets on the Upswing
Greystar Nears First Closing of $1B APAC Multi-family Venture: MTD TV

More MTD TV Videos>>

People in the News

Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27
Wu Jianxin Kaisa
Asia Real Estate People in the News 2022-06-20
Graham Mackie Tishman
Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India
Antoine Mesnage
AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

Asia Real Estate People in the News 2022-06-20

Wu Jianxin Kaisa

Top level executive changes at a pair of major mainland real estate companies lead this week’s round-up of personnel … Read More>>

Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India

Graham Mackie Tishman

US developer Tishman Speyer has hired industry veteran Graham Mackie as a managing director to lead the firm’s Asia … Read More>>

AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

Antoine Mesnage

AXA IM Alts is shaking up its leadership team Down Under with the appointment of Antoine Mesnage as the French firm’s … Read More>>

More Industry Professionals>>

Latest Stories

Lin Ho Man
Evergrande to ‘Vigorously’ Fight Winding-Up Petition Filed by Disgruntled Investor
Sunac Sun Hongbin
Sunac Meets Investors to Seek Second Extension on $600M in Domestic Bonds
Actis to Invest $700M in India Life Science Assets and More Asia Real Estate Headlines

Sponsored Features

Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape
Opportunities in the Greater Bay Area

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.