New home sales in China’s 50 major cities expected to slide more than 30% on year in July – research
DATA REAL ESTATE VIEWS & ANALYSIS
New home sales in China’s 50 major cities expected to slide more than 30% on year in July – research
DATA REAL ESTATE VIEWS & ANALYSIS

New home sales in China’s 50 major cities expected to slide more than 30% on year in July – research

 

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New home transactions by floor area, in China’s 50 major cities reached 8.16 square meters in the first 20 days of July, sliding 33% from the same period in June and falling 37% from a year earlier, according to data compiled by E-House China R&D Institute.

Based on that, new home transactions for the whole of July in the 50 cities are estimated to reach 12.65 million square meters, sliding 33% from a month earlier and down 37% year over year, it said.

Among the 50 cities, 42 cities or more than 80% saw new home transactions decline in July from the previous month, indicating a widespread cooling trend in the housing market, it said.

July’s transaction figure is at a rarely-seen low level and the risk for further decline remains, it said.

The current cooling trend in the housing market is not a seasonal adjustment but a reflection of some fundamental issues such as weak purchasing power, lack of market confidence, etc, which will further limit new home sales, it said.

In the first seven months of the year, new home transactions in the 50 cities are estimated to reach 127.53 million square meters, rising by 1% from a year earlier, and narrowing significantly from the 9% growth for the first six month, according to the report.