China Real Estate: Some Markets Are Making Huge Comebacks26 April, 2011, 12:39. Posted by Zarathustra
Tags: Real Estate
According to the CREIS, 21 out of 35 cities recorded increases in transaction volumes compared to the previous week (with 13 of them recorded an increase of more than 30%), and 26 cities recorded increases in prices. 17 out of 35 cities recorded increases in both prices and transaction volume. Hangzhou, Beijing and Shanghai markets are making strong comebacks. Hangzhou’s and Beijing’s transaction volumes increased by 91.61% and 57.52% respectively compared to the previous week, and Shanghai recorded a 30% increase in transaction volume, and the average selling price for last week has reached the record high of RMB30,00m per square meter.
While some cities are showing resilience, Guangzhou and Suzhou recorded drops in prices of more than 10%. In terms of transaction volume, Shantou, Luzhou, Wenzhou and Lianyungang recorded huge drops.
The big picture is mixed but largely positive. However, positive picture in the real estate markets mean negative for the central government as it means that the government curbing measures have not quite worked. Although some local governments (e.g. Haikou city) is feeling the pain, the overall real estate markets still show resilience. Together with the strong GDP, high inflation and strong power consumption data, that means that the Chinese government still have plenty of rooms for further tightening.