China's New Home Sales Surge in March Due to Supportive Policies
(MENAFN) China's new home sales rose sharply in March, reflecting a pickup in demand across 14 surveyed cities due to a slew of supportive policies, according to a private survey by the China Index Academy. The sales of new homes rose 55.7 percent month-on-month, a significant increase from the growth of 31.9 percent recorded in February. Tier-one cities, including Beijing and Shanghai, saw the highest growth, with sales jumping 73 percent last month. Sales in tier-two cities and tier-three cities grew 54.7 percent and 28.6 percent, respectively.
The data is welcome news for the Real estate sector, which was once the pillar of China's economic growth but was hit hard by several crises since mid-2021, including developers' debt defaults and stalled construction of pre-sold housing projects. Policymakers introduced a comprehensive bailout package at the end of last year to propel sales and enable project completions, which helped improve sentiment.
Real estate developers gained 2.4 percent on Monday, indicating a positive response to the news. The industry has also seen some gradual recovery in recent weeks as homebuyers look to return after Beijing abandoned its stringent "zero-COVID" policy in December. Local governments have also continued to ease property curbs or roll out stimulus policies to improve buyers' sentiment. For instance, the southeastern city of Xiamen recently relaxed home-buying curbs, allowing more residents to purchase properties.
A separate survey by the China Index Academy showed that prices of new homes in 100 Chinese cities rose at the fastest pace in nine months in March. The gradual recovery and positive growth in new home sales suggest that the Chinese real estate sector is on the path to recovery. The sector's recovery will be a significant boost for China's economic growth, as the real estate sector is one of the largest contributors to the country's GDP.
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