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New home sales by floor area in major Chinese cities during the three-day Mid-Autumn Festival Holiday (Sept 10 – 12) declined by 31.6% compared to the same holiday period last year (Sept 19 – 21), according to data released by China Index Academy, one of the largest independent real estate research firms in the country.
Real estate market activities improved in some cities such as Shanghai and Shenzhen due to optimization of policy environment and effective containment of Covid outbreaks, but in most cities, new home transactions dropped significantly year over year over the holiday, with cities of Changsha, Xining and Nanjing recording declines of more than 70%, showed the data.
So far this year, more than 250 provinces or cities have relaxed housing market policies by more than 700 times; at the end of June, the Politburo, the top decision-making body of the ruling Communist Party, pledged to stabilize the housing market and make good use of city-specific policies; and in August, the PBOC lowered the benchmark lending rates and the State Council sent more positive signals, vowing to rebuild housing market confidence.
However, expected a few cities, most cities’ real estate market confidence only recovered slightly, said the China Index Academy.
Last week, home transactions by floor area in major cities declined by more than 30% from a year earlier and since the start of July, weekly transactions have been mostly declined by more than 20% year over year due to seasonal factors, market cooling after pent-up demand was met and the home mortgage boycott campaign which dampened market confidence.
In September, market recovery was further disrupted by Covd flare-ups in several regions, it said.