Residential buildings in Beijing. The average price last year for second-hand housing in China's capital was 60,925 yuan per square meter, down 3.3% from a year earlier. Photo: iStock

Housing transactions in China’s first-tier cities continue to fall, while the decline is even more severe in third- and fourth-tier cities, Securities Daily reported on Wednesday.

According to data released by the Shanghai E-House Real Estate Research Institute, over the first half of November, residential housing transactions in first-tier cities fell by 3% compared to last month.

That of second-tier cities increased by 27%, while that of third- and fourth-tier cities fell by 20%.

Second-tier cities in the eastern region saw a significant increase in housing transactions, mainly in Qingdao, Hefei and Nanjing cities.

This is likely because developers in these areas are accelerating the promotion of new real estate projects. Also, strict control of pre-sale certificates and online contract signing have been recently relaxed.

In future, developers will continue to accelerate the promotion of new projects under financial pressure, but the market will likely cool off as housing regulations continue to be tightened.