ASIAdocument.write(“” + m[today.getMonth()+1]+ ” “+ today.getDate()+”, ” + theYear + ” “);HOMECHINAWORLDBUSINESSLIFESTYLECULTURETRAVELSPORTSOPINIONREGIONALFORUMNEWSPAPERChina Daily PDFChina Daily E-paperChina Daily Global PDFChina Daily Global E-paperBusiness /IndustriesEconomyPolicy WatchChina DataCompaniesMarketsIndustriesViewMotoringTechGreen ChinaStock investors turn to property after cashing inBy Cai Muyuan(chinadaily.com.cn)Updated:2015-06-01 17:12Comments Print Mail Large Medium SmallPotential homebuyers take a look at residential housing at a sales center in Yichang, Hubei province, May 23, 2015. The month-on-month price of newly built houses in 100 cities rose in May after falling for months, and 48 cities witnessed a housing price hike, including Beijing, Shanghai, Guangzhou and Shenzhen. [Photo / IC] Domestic property market saw a turnaround in May due to the easing of the policy and overflow capital from the stock market pouring into the real estate sector to meet investment demand, statistics from China Index Academys report showed.
According to the report, the month-on-month price of newly built houses in 100 cities rose in May after falling for months, and 48 cities witnessed a housing price hike, including Beijing, Shanghai, Guangzhou and Shenzhen.
As property market started showing recovery signs in March and April, a red hot market momentum was no surprise for many cities. Data from property agent Centaline showed that 194,909 units of urban property deals were signed in the first 24 days of May, an 8.3 percent growth from April.The average price of newly built properties was 10,569 yuan/sqm in May in 100 cities, a 0.45 percent rise from the previous month, according to the report.
Buildings in some first- and second-tier cities were sold out in a day due to high demand. Li Qiaoling, market analyst with Homelink Real Estate Agency, told chinanews.com that nine buildings in Beijing sold more than 100 apartments individually in May compared to four buildings in April. Statistics also showed that three newly opened buildings in Shenzhen were sold out in a day.
Developers in some cities started testing the market by raising price in small ranges and reducing discounts. According to the report, 44 old buildings on the market in 10 cities have shown signs of price hike while 12 new buildings reported a price rise.
Yan Yuejin, analyst with E-house China, thinks that its not a good time for developers to raise prices. “Raising price blindly can cause unhealthy competition in the market which will eventually risk losing potential customers.” Yan thinks that the price will not rise dramatically in short-term but theres a big chance for an overall price hike in property market.
Industry insiders believe that the easing property policies, rate cut and RRR cut lately along with demand rise lead to the market to boom in May.
The property market has also attracted buyers with investment demand who shifted their attentions from stock market. ” After the stock market fluctuation, investors who have made benefit in the early period will look for a more secure destination to invest their money and property market offers a much safer and stable solution”, said Guo Yi, market director with Beijing-based real estate consultancy Yahao.8.03KRelated StoriesNo end in sight to new property downturnBuying property can be tricky businessChinese property developers ally to sharpen competenceProperty collateral growth exposes Chinese banks weakness: FitchPhotoWorlds 15 most valuable brands of 2015Gucci launches 50% discount in ChinaPhotographing your petsTop 10 most polluted cities in ChinaAncient shoe brand that fast-tracks promotion2015 Intl CES Asia opens in ShanghaiChina Economy By NumbersChina Economy by Numbers – Dec China Economy by Numbers – Nov NewsmakerTop executive of Infor has head in the cloud Zwilling stays at cutting edge of the kitchenware industryMost ViewedTodays Top NewsFormal signing of China-S.Korea FTA to enhance economic cooperationChina stocks rise on factory surveys, optimism bull market not overChina, South Korea sign FTA dealJaguar names new senior executives in ChinaChinas manufacturing activity deteriorates in May: HSBCChinese online shop a choice for more BraziliansChina treasury bond futures open mixed MondayChina stocks open higher MondayHot TopicsFiat SpA Peugeot SA Taxi app Internet finance Housing price Disneyland 12306.cn WeChatEditors PicksWorlds 15 most valuable brands Top 10 most polluted cities in China Top 9 smartphone-driven gadgets Top 10 baijiu brands in China SpecialsBoao Forum For Asia 2015China Development Forum 2015CEO roundtable: new normal& strategies…| About China Daily | Advertise on Site | Contact Us | Job Offer | Expat Employment |Copyright 1995 -var oTime = new Date();
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