The government has been trying to cool down the overheated real estate industry, but demand for new houses remain high, whatever the government does, tells Shanghai-based business analyst Shaun Rein at the BBC.
The BBC:
Some analysts said the strict rules had resulted in a short supply of new homes, driving up prices.
The new measures include higher transaction taxes, restrictions on purchases of multiple homes in some cities as well as higher down payments.
“After the government unveiled the curbs in the residential market, many real estate developers shifted their focus on developing commercial projects,” aid Shaun Rein managing director at China Market Research Group.
“That has seen the supply of residential property slow down drastically.
“But demand for new homes is still strong, especially from those looking to buy their first-home or upgrade to a bigger property,” he added.
New house prices in Guangzhou posted the biggest jump, up 17% from a year earlier, while Beijing and Shanghai saw prices rise by 14% from a year ago, according to data released by National Bureau of Statistics on Sunday.
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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