Land sale values in second tier Chinese cities reached 293.3 billion yuan (US$43.1 billion) in April, marking a two year high, according to data from Centaline Property Agency.
Wuhan, Hangzhou, Suzhou, Hefei and Wenzhou are among the cites that recorded most active land sales in April.
The chief analyst of the property agency said loose credit measures fuelled the financing demands of developers after the Lunar New Year holiday in February and partly led to more interest in the second tier land market.
From the supply side, China’s second and third tier cities rebounded in April. The planned land supply in major cities totalled 269.25 million square meters in April, up 30% month on month and 72% year on year. In addition, transactions price have also increased.
Given the activity in the land market, some government authorities have warned of risks and reiterated the importance of continuing efforts to curb rapid increases in home prices.