China’s Property Market Is Picking Up And Back To Normal Soon

The property market once pressed the pause button under the COVID-19 outbreaks. Housing companies faced great pressure on cash flow and offline marketing activities. A pessimistic atmosphere envelopes the real estate market. However, with the accelerated progress of resumption of production across the country, the transaction volume of the property market has resumed significantly since March, and the land market has become increasingly active. In April, the sales of the top 100 housing companies have surpassed the level of the same period last year, and the property market has recovered faster than expected!

Some people are still waiting for house prices to fall, but find that it has risen higher than before. The wonder of life is that we can’t imagine what will happen tomorrow.

1 Real estate transaction volume rises, house price as well

First, both transaction volume and house prices indicate that the property market is picking up. The data of transaction volume in February was indeed miserable. Across the country, 19 cities had no first-hand housing transactions, and 24 cities had no second-hand housing transactions. Even in some cities with transactions, the amount was still pitiful.

However, as the order of production and life resumed, the housing demand backlogged by the COVID-19 soon ushered in a release. By March, with the full opening of offline sales galleries in various places, the market has already started to heat up.

In March, the price of new and second-hand houses in 70 large and medium-sized cities increased significantly compared with the previous month in 2020. In the new housing market, prices in 38 cities rose and 32 cities rose in the second-hand housing market (up to the level of November last year and exceeding the level of October last year).

Second, the transaction volume of TOP100 in April has exceeded last year. According to CRIC data, TOP100 property companies achieved a total transaction volume of 900.23 billion yuan in April, an increase of 17.2% from March and an increase of 0.6% year-on-year. This is the first time since the COVID-19 outbreak, the top 100 real estate sales is positive!

Previously, CEO Shao Mingxiao, from Longhu, said at the performance meeting that it is expected that the market will return to normal by April this year. It is a little optimistic, but the whole market returned to normal in May, there is no suspense!

2 Land transactions are hot and the land king is reappearing

Regarding the recovery on the house purchasing demands, some people say that this is just the release of the backlog of purchasing power. There is even a big V(the social medium with much traffic) who believes that this is a special phenomenon in a special period, and the follow-up may not be sustainable.

Is this really the case? Obviously not! Because the land trading market is also continuing to heat up, property companies are willing to enlarge the investment of land, we can see something of the future property market from this.

According to data from the Middle Finger Institute, after the stable period in March, the land market was particularly hot in April, the total amount of land acquired by the TOP50 housing companies reached 310.2 billion yuan in this month, an increase of 105% from the previous month, and the year-on-year growth has reached 0.5%; the total amount of land acquired for TOP100 housing companies has reached 388.2 billion yuan, an increase of 108.9% month-on-month and an increase of 7.2% year-on-year!

In fact, as early as March, the new land king(Property companies acquire land development rights at high prices) born in Guangzhou set a new record for land auction unit price of 64,576 yuan / square meter. Besides, Xiamen created the “10 billion new king of the land”, Nanjing born 2 pieces of land kings over 40,000 per square in a day …

3 Demand for rental housing is picking up quickly

Buying a house is an investment, and renting a house is consumption. Renting houses reflects the real housing needs, and characterizes the situation of employment and economic recovery … This is the most basic support of the property market.

Affected by the COVID-19, the rental housing market this year has been delayed by one month compared to last year’s peak season. Throughout the first quarter, the market volume showed a U-shaped trend, but the volume in the third week of March has exceeded the level of the same period last year.

In April, the data rebounded further. Demand picking up has also driven up the rental price. According to the monitoring data of Zhuge Finding House Data Research Center, the average rental price of large and medium-sized cities nationwide in April 2019 was 43.94 yuan / square meter/month, an increase of 0.55% from the previous month.

Various signs indicate that the real estate recovery is not just a special phenomenon in a special period, but a continuous demand, the demand for a better quality of life after the COVID-19. What’s your opinions about the topic, If you have any questions about the article or want to discuss with us, please leave us a comment below or email us:

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