China real estate industry update
By Wood Markets
Sept. 16, 2014 - According to a new report released by National Bureau of Statistics, the total investment in China's real estate development in the first seven months of 2014 was over US$800 billion (5.04 trillion RMB), a nominal increase of 13.7% year-over-year. The investment in residential buildings was over US$545 billion, up 13.3% year-over-year, and it accounted for 68.2% of China's real estate development investment.
With a trend of falling prices, this has already attracted some bargain hunters into the market. Government policies on the real estate industry are being gradually loosened to try and prevent a housing market collapse. So far, more than 37 cities have lifted restrictions on purchase restrictions, although eight of larger cities still have kept the purchase restrictions as these markets are still overheated. Also, some commercial banks have re-started preferential interest rates for first-time buyers. Relaxed credit policy will have a direct and positive impact on many property markets. All of these efforts are designed to prop up the sagging real estate market in China, even though it may already be over-priced relative to what many potential buyers can afford to pay.
The full report is available through www.woodmarkets.com.