Beijing and Shanghai Real Estate Markets Experience Surge in Demand After New Policies
Many developers in Beijing and Shanghai have shown optimism following the release of the recent real estate market control policies. These policies have aimed at improving the housing market conditions and have had a noticeable effect on the market.
In Beijing, Longfor Construction Engineering·Jiuli Xichen witnessed a significant increase in visitors, reaching nearly 150 groups during the first weekend of the New Deal. Similarly, China Construction Chenlu Yunqi saw an impressive 200 group visits and sold 18 units, including 7 villas.
The policies, introduced on December 14, led to a reduction in down payment ratios for home buyers and adjustments to standards for ordinary housing, sparking heated discussions within the market.
However, despite the increased activity in the new housing market, the second-hand housing market in Beijing seems to be slower to react. Many owners are reluctant to sell at lower prices, leading to obstacles for potential buyers.
On the other hand, Shanghai’s real estate market experienced a surge in demand, with significantly increased online new home signings over the weekend following the New Deal. According to the China Index Research Institute, the number of transactions in Shanghai increased by 126% over the weekend.
While there has been an increase in the number of listings that have increased in price in the past few days, many potential buyers seem undeterred and have shown a willingness to invest.
Additionally, transactions in individual luxury homes in Shanghai have been described as “crazy” with notable increases in activity. Many buyers are taking advantage of the policy changes to make purchases.
The overall assessment from industry experts and analysts is that the real estate market activity in Beijing and Shanghai is expected to increase in the short term, with price expectations anticipated to stabilize further.
It is important to note that investment decisions should be made with caution, taking into consideration individual circumstances and market risks. This article does not constitute personal investment advice.