China’s property market shows more positive signs with price, sales upticks
Sector has ‘weathered its most severe adjustment’, with overall market sentiment ‘turning noticeably positive’, analyst says
China’s home prices saw a modest recovery in May, adding to growth in March and April, as positive signs of a gradually stabilising property market continued to accumulate after five years of weakness, according to analysts.
In May, the average price of newly built residential properties across 100 Chinese cities stood at 17,156 yuan (US$2,534) per square metre, edging up 0.16 per cent from a month earlier and 2.03 per cent year on year, data from the China Index Academy showed on Monday.
The uptick came after new home prices in first-tier cities posted month-on-month gains of 0.2 per cent in March and 0.1 per cent in April, according to the National Bureau of Statistics.
Mainland-listed property stocks rallied across the board on Monday. Shenzhen-listed Grandjoy Holdings Group jumped 9.96 per cent, while Shanghai-listed Deluxe Family gained 10.19 per cent and Shanghai Lujiazui Finance & Trade Zone Development rose 3.86 per cent.
“Conservatively speaking, the sector has weathered its most severe adjustment, with overall market sentiment turning noticeably positive,” said Yan Yuejin, vice-president for Shanghai-based E-house China Research and Development Institute. “The rebound is tied to changing price expectations, as market participants generally believe the housing price correction is drawing to a close.”
Desirable cities and prime locations were seeing robust demand, which reflected a bottoming after prolonged adjustments, Yan added.