Beijing property market freezing up
April 24, 2017 Category Real estate, Weekly
The property market in Beijing is freezing up after the city government stepped up control measures on home purchases since March 17. Sales in the primary and secondary residential markets in the city have slumped while apartments built on commercial and office land, an alternative product, also faced a bleak future. As of March 16, just 1,106 units of new private homes were sold this month, down 66% from a month earlier and 79% year-on-year, according to real estate consultancy Yahao. Sales of apartments built on commercial and office land also dried up. From a peak of 2,265 units sold in the week before the tightening, only 62 units were sold in the first week after, falling further to 53 and then 31 in subsequent weeks. The average selling price also eased to CNY34,828 per square meter from CNY47,727 during the period. Yahao’s Deputy General Manager Gao Shan said the price caps imposed on primary homes also dampened developers’ willingness to sell new projects, further squeezing supply in the market. So far this month, only two projects were released for sale while most others were put on hold as the regulated prices made it virtually impossible for developers to generate any profits. A price cap of CNY150,000 per sq m has also been placed on the second-hand market across the city, the South China Morning Post reports.
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