Beijing Pre-owned Home Transactions Plunge by Half
The transaction volumes for pre-owned homes in the Chinese capital have posted a year-on-year plunge for the first tenth months of 2017, as property values continue to decline.
Data from Centaline Property indicates that the raft of property controls launched by Beijing in March has served to severely constrain the real estate market.
Just prior to launch of property control policies, the first quarter of 2017 saw a pre-owned home transaction volume of 50,980 units, for a monthly average of nearly 17,000 units.
On 17 March, however, Beijing unveiled a slew of property control policies, including lending and purchase restrictions, and sharp hikes in the minimum downpayment for home purchases .
In the second quarter Beijing’s pre-owned home transaction volume fell to 36,621 units, for a monthly average of 12,207 units.
The impacts of property control policies stepped up further in the third quarter, which saw a total transaction volume for pre-owned homes of 23,748 units, for a monthly average of 8,000 units.
In October Beijing’s pre-owned home transaction volume hit a near 43 month low of 6,162 units, while the total transaction volume of 117,509 units for the first ten months of 2017 marks a 50.4% drop compared to the same period of 2016.
In tandem with the drop in transaction volumes, pre-owned homes in Beijing have also seen an unchecked decline in prices.
Figures released by China’s National Bureau of Statistics indicate that Beijing pre-owned home prices saw an on month decline of 0.5% in October, leading nationwide home price declines for the sixth consecutive month.
During the same month first-tier Chinese cities posted a 0.1% price decline for new residential commercial housing, while prices for pre-owned homes held steady.