New data points to a sizeable decline in the transaction floorspace for the real estate markets of hot spot Chinese cities in October, as municipal authorities maintain the pressure of market control policies and financial regulators target property lending.
The total transaction floor space for 20 hot spot cities was 14.48 million square metres in October, for a decline of 11% compared to the preceding period, according to a report from China Securities Journal.
Four cities including Shenzhen, Qingdao, Hangzhou and Dalian saw drops in transaction floor space of over 40%, while Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Chongqing all saw declines of over 10%.
Since the start of November Chinese regional authorities have issued at least 12 policies in relation to real estate markets, primarily in relation to regulatory breaches in relation to sales.
The Ministry of Housing and Urban-Rural Development recently announced the launch of a special campaign to investigate a total of 24 real estate developers and real estate agencies around China suspected of regulatory breaches.
Since the start of November the China Banking and Insurance Regulatory Commission (CBIRC) has also issued five banks with fines worth over 4 million yuan in aggregate for breaches in relation to real estate lending.
Data from 58 Anjuke indicates that financing pressure for Chinese real estate firms has increased markedly since the start of 2018.
During the period from January to September the financing costs of China’s top 50 real estate enterprises saw an average year-on-year rise of 1 percentage point, while the financing amount narrowed by nearly 30% compared to the same period last year.