New home prices cool as sales plummet
New home prices in 57 of 70 major Chinese cities increased month-on-month in February, according to the National Bureau of Statistics, but the growth rate is shrinking and the number of home sales plummeting.
According to Century 21, a major real estate brokerage firm, transactions in the pre-owned home market in most of China’s major cities, including Beijing and Shanghai, dropped more than 50 percent year-on-year in the first quarter.
“The market performance of the second quarter really matters,” said Sang Yufeng, director of Century 21’s development center. “If property transactions stabilize and pick up in the second quarter, then the sluggish home sales in the first three months is just a short-term adjustment,” he said. (Photo 4)