Nanchang China Real Estate
Home prices in China are expected to remain broadly stable this year, helping cushion the effects of a new type of coronavirus outbreak, industry experts said Monday. The National Bureau of Statistics released a report showing investment in real estate as the second-largest source of economic growth in the country last year. Home prices in Beijing, Shanghai, Guangzhou, Shenzhen and other major cities rose in 2016, according to figures from the China Real Estate Association, based on figures from the National Bureau of Statistics.
The same month, the Bank of England also announced tighter mortgage rules to increase payments on second homes and to suspend issuance of new mortgages to first and second-time buyers until March 2017. In Shanghai, average residential rents rose to CNY 1.2 billion ($2.6 billion) in the first quarter of 2017, an increase of 0.3% quarter-on-quarter, but down slightly from 0.2% in previous quarters. Luxury villas in the capital cities also saw an increase, with average monthly rents rising 1.4%, 1% and 2% in Beijing, Guangzhou, Shenzhen and other major cities, according to the report.
Municipalities in lower-lying cities have also begun to introduce stricter rules and regulations on advance sales, by sticking to unrelaxed regulations and property management objectives. Wuhan loosened its control over housing companies in the first quarter of 2017 by loosening pre-sale oversight, according to the report, while Changchun lowered standards before sales by simplifying conditions for real estate companies before sales.
New land policies have also been introduced, including installments and land transfers, allowing for changes in payment deadlines, postponement of validity periods for land assessments and much more. In September 2017, Wuhan City, one of China's most populous cities, reportedly introduced new home buyer controls, most of which prohibit resale within two to three years of purchase. It took the unusual step of banning owners from reselling their homes within five years of purchase, the report said.
The real estate raids also included Beijing and Tianjin, which like Shanghai are classified as provincial units. The mortgage market is run by state-owned commercial banks, and these four cities have been observed to have beneficial tourist resources. But it seems impossible that the outlets in China held by the Chinese Development and Reform Commission (CDRC) and the State Administration of Housing and Urban Development (SADU), as well as the Beijing Urban Political Consultative Conference, can enter the city without any significant plan. This is true of the sprawling community of Wuhan, the urban core of Chongqing, which is part of China's second-largest city and hosts more than half the country's population.
The Chinese are linked to the country's tendency to behave like a country, with a high level of investment in real estate development in the first half of the year. According to data from the National Development and Reform Commission (CDRC), residential real estate investment in China accounted for only 2.5% of total fixed assets in 2015, while real estate development accounted for 24% overall.
In response to a call by the Chinese Real Estate Industry Association for online solutions to replace brick-and-mortar sales as an "epidemic," nearly 151 real estate developers launched online marketing campaigns in the first half of 2015, according to the CRIC study, of which more than 1,000 had online sales pavilions.
In Beijing, average rent for high-end apartments rose to CNY 2,000 per square metre in the first quarter of 2019 from CY2,300 per month the previous month. In Shenzhen, house prices rose 0.5% from the previous month, according to the latest data from the China Property Industry Association. The average price of a two-bedroom apartment in Beijing, China's second largest city by population, fell 1.4% in March 2019 compared with the second quarter of 2018, the company said in announcing its first-quarter results.
The housing market appears to have factored in the price decline that showed up on Monday, when real estate companies lost value on the major stock exchanges. In Shanghai, for example, only 12% fell, while 115 shares of real estate companies rose, the Shanghai Stock Exchange said. China's real estate sector ranked fourth in market capitalization last year, behind the country's financial sector and the breathtaking tech sector, which has a market capitalization of more than 1.3 trillion yuan.
In Beijing, by contrast, the new supply of residential property has risen to 1.26 million square metres. CITIC Real Estate has announced its collaboration with Jiujiang to develop the Mount Lushan Xihai Project. Since 2007, Zeng Weiping Business & Design has experienced and experienced the growth of the real estate sector in urban areas and the development of new residential properties in cooperation with the city.
After the COVID-19 outbreak prompted many Chinese families to pay their rents and mortgages, several cities, including Shanghai, Xi'an, Wuxi, Nanchang, and Nanjing, introduced a series of lax home-buying measures to ease the burden on people and revive the stagnant real estate market. In 2003, Shanghai Hengyuan Football Club, based in Zhabei County, entered into a partnership with Zeng Weiping Business & Design to develop new residential properties.