Hangzhou house trans­ac­tions leap

China Daily (USA) - - BUSINESS - ByWUYIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn

The trans­ac­tion vol­ume of apart­ments in Hangzhou jumped more than 180 per­cent week-on-week be­tween Sept 12 and Sept 18 as in­vestors flocked to the city to buy sec­ond homes be­fore the laun­chofhome­pur­chase­lim­its on non-res­i­dents buy­ers.

The city au­thor­i­ties said that, ef­fec­tive from Sept 19, home­buy­ers with­out house­hold reg­is­tra­tion in the city— known in Chi­nese as hukou — are not al­lowed to buy a sec­ond­homein the city’s cen­tral districts, in a bid to curb rapidly ris­ing house prices, curb spec­u­la­tive buy­ing and pre­vent risks.

Ac­cord­ing to lat­est data from the Na­tional Bureau of Sta­tis­tics, which mon­i­tors new home price in 70 cities across China, the av­er­age price in­Hangzhou in­creased 3.3 per­cent month-on­month in Au­gust, the 17th con­sec­u­tive monthly rise.

Au­gust’s data rep­re­sents a sharp turn around for the mo­men­tum of the prop­erty mar­ket af­ter the last three months of slow­ing growth rates. While the fastest ac­cel­er­a­tion in price growth was still in lead­ing first and sec­ond tier cities, lower tier cities also shared in the re­ver­sal in for­tunes.

“With prices now ris­ing at the fastest rate in more than five years, the pol­icy en­vi­ron­ment is likely to shift again, cool­ing the prop­erty mar­ket in the lead­ing cities more than it has in the past few months,” said James Mac­don­ald, Head of China Re­search at Sav­ills.

Hangzhou be­came the fourth tier-two city to curb prop­erty pur­chases in 2016, fol­low­ingXi­a­men, He­fei and Suzhou, which in­tro­duced var­i­ous mea­sures to limit home pur­chases and ap­pli­ca­tions for fi­nanc­ing.

Zhang Juy­ing, a res­i­dent of Jin­hua who rushed to Hangzhou to buy her sec­ond apart­ment in early Septem­ber, said the curbs showed thath­ome­pricesinHangzhou are go­ing to rise fur­ther.

“The curbs mean that in­ven­tory and sup­plies are lim­ited, and de­mand is great, which re­sults in higher prices — oth­er­wise there is no need for curbs. In fact, in­vest­ing in the prop­erty mar­ket is per­haps the only type of in­vest­ment in which we feel a re­turn is guar­an­teed,” said Zhang.

Prop­erty agents in the city said that home prices are ris­ing so fast in the city be­cause sup­ply is fail­ing to keep pace with de­mand.

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