Real estate analysts expect pre-owned home transactions to post a year-on-year drop of more than 50% this year in the Chinese capital.
Centaline Property forecasts that Beijing’s full-year pre-owned home transactions will reach 134,000 for 2017, marking a decline of 51% compared to 270,000 transactions in 2016, as well as the lowest full year transaction volume since 2015.
Centaline’s chief analyst Zhang Dawei said that transaction volumes will continue to remain low in 2018, with the full year figure potentially falling to as few as 100,000.
Following a pronounced surge in home prices in 2016, municipal authorities around China launched a range of property control measures beginning in March, including sales restrictions, purchase restrictions, lending curbs, and interest rate hikes.
Home prices are also declining in tandem with the drop in transaction levels.
Data from Maitian Real Estate (麦田房产) indicates that up to 96% of home transactions have involved price declines, which could strengthen the willingness of some buyers to enter the market.