The spread of the coronavirus led to a sharp decline in China’s property market transactions in the month of February.
The latest data from CRIC (克而瑞研究中心) indicates that the total transaction floorspace for 27 key Chinese cities monitored was 2.4 million square metres, for an on-month decline of 83%, and a YoY drop of 77%.
The total transaction floorspace for China’s first-tier cities was just 290,000 square metres, for an on-month drop of 82% and a YoY decline of 73%.
The total transaction floorspace for second and third-tier cities was 211,000 square metres, for a YoY decline of 78% and an on-month decline of 84%.
“In the month of February, because many key cities suspended offline operations by property agencies for the entire month, the transaction volume for most cities approached a blow out,” said a CRIC analyst to state media.
“During the Spring Festival period the sales offices of most places were forced to temporarily suspend sales activities. On top of this first and second-tier cities have generally delayed work resumption periods, with half of property enterprises commencing the resumption of work on 17 February, leading to a precipitous drop in overall supply.
“At present the work resumption rate of several first-tier cities such as Beijing, Shanghai and Guangzhou has basically reached over 50%, and it is expected that in March supply in first-tier cities will gradually recover.”