Real estate transactions have continued to decline in major urban centres across China, following the introduction of strict policy measures to control the property market.
Data from the China Index Academy indicates that the commercial real estate transaction area across the 29 key cities that it monitors fell 8.69% in July compared to the preceding month, with nearly 60% of cities posting month-on-month declines.
According to CIA figures the 29 cities saw a 26% year-on-year decline infomercial real estate transaction area.
First-tier cities saw the biggest drop in transaction area, with a year-on-year decline of 46%, and key cities including Beijing and Guangzhou posting falls in excess of 50%.
The transaction area for major second-tier cities fell 4.11% month-on-month and 23.03% year-on-year, while for third-tier cities the month-on-month decline was 17.51%, and the drop compared to the same period last year was 16.40%.
Cities posting the biggest year-on-year transaction area declines included the Fujian province capital of Fuzhou (-60.26%), the Shandong province capital of Jinan (-59.96%), as well as Beijing, Guangzhou, Dongguan, Xi’an and Nanchang.
Total inventory levels stabilised as a result of the cooling property market, with 8 key cities including Ningbo, Suzhou, Nanjing and Wenzhou seeing month-on-month increases of 0.3% in January.
Hu Jinghui, vice-director of B.A. Consulting, said to the China News Service that the tightening policies launched in a number of key first and second-tier cities, as well as some third-tier cities, were serving to curb restrict transactions as well as curb speculation, which would have a positive impact on the growth of China’s property market.
Earlier this year at a key economic work meeting China’s senior leaders flagged a major crackdown on any speculative behaviour in the property market, declaring that “houses are for occupation, not speculation.”