China's Home Prices Jumped Up to 3% in April in Covid-19’s Wake
Lin Xiaozhao
DATE:  May 18 2020
/ SOURCE:  Yicai
China's Home Prices Jumped Up to 3% in April in Covid-19’s Wake China's Home Prices Jumped Up to 3% in April in Covid-19’s Wake

(Yicai Global) May 18 -- China’s home prices rose in April, with the four largest cities logging gains of nearly 3 percent for new and previously owned properties, as pent-up demand is released after the coronavirus epidemic.

The price of new and pre-owned homes in Beijing, Shanghai, Guangzhou and Shenzhen rose 2.9 percent and 3 percent respectively in April from the year before, according to data released by the National Bureau of Statistics today. The hi-tech city of Shenzhen had the highest spike, clocking a 10.3 percent jump in second-hand home prices from a year earlier.

The economy has been quick to recover from the impact of the epidemic in some cities, Zhang Dawei, chief analyst at Centaline Property Agency, told Yicai Global. The average floor area sold in April was already at between 80 percent and 90 percent of last year’s levels, and in some cities was even more than in 2019, he added.

The property market is recovering at a much faster pace than expected, said Zhang Bo, head of real estate data platform Anjuke. Some projects in Shanghai and Shenzhen are even overheating, and there is a growing number of cities where prices are rising. But that has not affected the market’s overall stability, he added.

More properties have changed hands in the first half of May than in the same period last year, Zhang added, saying that the market is expecting a “slight high season” between this month and next.

Sales of new homes in first tier cities rose 0.2 percent in April from the month before, the NBS data showed. The monthly growth rate was the same as in March, and the yearly growth rate was down 0.4 percentage point from March.

The cost of new and pre-owned homes in China’s 31 second-tier cities was up 0.5 percent and 0.4 percent respectively from the month before, both a rise of 0.2 point from March’s gains.

Editor: Kim Taylor

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Keywords:   Properties,Data