(Yicai Global) March 16 -- Twenty-four of 70 mid-sized and large Chinese cities reported zero sales of pre-owned homes last month, despite substantial discounts being offered, as China's real estate market chokes amid the novel coronavirus outbreak.
Pre-owned home prices were unchanged in second-tier cities from January, according to a document released by the National Bureau of Statistics today. Its survey looked at China's four first-tier cities, 31 second-tier cities and 35 third-tier cities.
Transactions came to a standstill last month and price cuts had little effect, said Yan Yuejin, head of research at the Shanghai E-House Real Estate Research Institute. Real estate agencies are slowly starting to reopen this month as the epidemic abates, and it is hoped that continued price rebates will help to revive demand, Yan added.
Nineteen cities among the total surveyed logged zero new property sales. Twelve second-tier cities including Wuhan, Shijiazhuang and Taiyuan had no sales and seven third-tier cities including Yangzhou, Bengbu and Pingdingshan also saw no action.
Wuhan, Shijiazhuang and Hohhot were among the 12 second-tier cities that had no home resales and Baotou, Jinzhou and Yangzhou were among the 12 third-tier cities that had no turnover in pre-owned homes.
New home prices in China's four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen remained the same last month as they were in January. Prices had risen 0.4 percent in January from December. Prices of pre-owned homes rose 0.2 percent last month from January, a drop of 0.3 percentage point.
The cost of new houses in second-tier cities last month jumped 0.1 percent from January, down 0.1 point month on month.
New properties in third-tier cities climbed 0.1 percent last month from January, down 0.3 percentage point, and pre-owned houses fell 0.1 percent against January's rise of 0.2 percent from December.
Editor: Kim Taylor