Home transactions slumped in several cities which were previously red-hot for housing during early October’s “Golden Week,” an eight-day national holiday in China aimed at boosting domestic consumption and tourism, China Securities Journal reported.
On average, home sales in cities such as Beijing and Shanghai have dropped around 80% during the week from a year earlier. According to Centreline Property, Beijing sold 78 new homes and 23 second-hand homes for the first six days of October — both figures being the lowest ever since 2009.
Insiders think the tightened housing policy, a slowdown in sales promotion by real estate companies and buyers’ wait-and-see attitude may explain the sluggish results.
Some cities have increased the down payment amount for second-hand homes, adding pressure to buyers, said Yan Yuejin, the director of Shanghai E-House Real Estate Research Institute.
Zhang Hongwei, the director of Tospur Real Estate Consulting, estimates that current regulatory housing policies will last for one-and-a-half or two years, continuing till the third quarter of 2018.