80 Chinese Cities See YoY Decline in Housing Inventories for 27th Consecutive Month


Central government policies intended to reduce housing inventories continue to take effect, with the total floorspace for 80 Chinese cities dropping to a more than four year low.

The latest data from the Shanghai E-House Real Estate Research Institute indicates that the new commercial housing inventory floorspace for 80 cities monitored was 393.9 million square metres as of the end of October, for a month-on-month decline of 2.1% and a year-on-year drop of 10.1%.

The figure marks the 27th month that the 80 cities monitored by Shanghai E-House have posted a year-on-year decline in their new commercial housing inventory floorspace.

The inventory floorspace figure for October also marks a more-than four year low which was last breached in August 2013.

According to Shanghai E-House the nationwide 80-city inventory volume has declined continuous since 2015 since the roll out of property market control policies by the Chinese government.

Yan Juejin (严跃进), an analyst from Shanghai E-House, said that the widespread implementation of strict pre-sale approval policies around China was the key reason for inventory declines.

“The newly approved pre-sales area for new commercial residential housing in 80 cities in October 2017 was 278.2 million square metres, for a month-on-month decline of 33.3%, and year-on-year decline of 36.4%.

“Overall, the pace at which real estate companies are pushing new properties is easing. This also indicates that current pre-sale certificate control policies remain quite strict, as well as in excess of expectations.”