Surprise with the strong recovery of the Chinese real estate market after falling into the biggest house price decline in history due to Covid-19
According to a new report released by the CRIC Real Estate Research Institute, sales of top Chinese real estate brokers have increased sharply in the last March, in the country’s economic recovery after the COVID-19 disease crisis.
China Merchants Shekou Industrial Zone Holdings Co., Ltd. saw sales of 21.74 billion yuan last month, up 22.1% over the same period last year.
Meanwhile, Country Garden, one of China’s largest real estate developers, recorded contracted sales of about 66 billion yuan (about 9.38 billion US dollars) in March 2020, equivalent to the level of the same period in 2019.
Trading results in 8 major cities, including: Shenzhen, Chengdu, Fuzhou, Hangzhou, Hoai Nam, Duong Chau, Gia Hung and Shantou also show that home buyers have returned in recent weeks, with transaction volume surpassing the average in the fourth quarter of 2019.
According to analysts at CRIC, despite the impact of the COVID-19 on sales, hand-over operations and the conclusion of home sales, the Chinese real estate market is gradually recovering and still has opportunity to achieve sales targets for the whole year 2020 if companies pay more attention to marketing strategies.
According to the South China Morning Post, Chinese real estate developers have launched stimulus programs by reducing prices to increase sales and prevent liquidity crisis.
“The housing prices of some new projects have been tightened by the authorities and are below market prices. Housing and land price restrictions have led to price differences, so people rushed to buy houses, and real estate developers compete to buy land, “said Yang Hongxu, deputy director of China E-house Development and Research Institute.
Explaining the phenomenon of bustling housing trading, Mr. Yang Hongxu also said that it was a relief for suppressed housing demand since the Lunar New Year and the application of measures to blockade and prevent Covid-19 in February. “Therefore, the real estate market has warmed somewhat,” Mr. Yang added.
It is known that before that new home prices in China grew in January at the weakest pace in nearly 2 years because the world’s second largest economy increased slowly and the rapid outbreak of COVID-19 caused the Chinese real estate market has been in a sluggish state.
In February, China’s third-largest real estate developer has announced its biggest home-price discount strategy, down 25% on 811 projects it is selling. This is the largest sale ever in China.