Property In China Picks Up

Thursday 16.04.2009 (17 months ago)
China :: Property News

China's real-estate market continues to exhibit signs of improvement during March, with price declines easing and government support measures helping property sales pick up.

Residential property sales increased 8.7%, though the commercial market remains weak, with sales down 13.1%.

Property prices remain down but prices are starting to stabilize. The statistics bureau reported average housing prices in 70 Chinese cities rose 0.2% in March, the first gain after seven consecutive monthly declines.

Analysts said the data demonstrates signs of an early recovery in the property sector, which is key to the revival of the world's third-largest economy.

"The government measures to improve affordability have had a very big impact," said Michael Klibaner, head of China research at Jones Lang LaSalle, a real-estate-services company. "Between lower interest rates, lower transaction costs and lower down-payment requirements, affordability has improved enough that the number of people that can participate in the market has increased a lot. To us, that means that this recovery can last more than a month or two and will be more sustainable."

Beijing's measures to boost the real-estate sector, unveiled late last year, includes broader tax breaks for home buyers as well as lower down-payment requirements to 20% of the property value, from 30%.

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