China’s home sales in November soared by 23.9% m-o-m to 114 million square meters, and total sales value up 18.3% from last month to RMB 595 billion. Average home price was slightly down by 4.51% m-o-m to RMB 5,223 per square meter during the month. According to data compiled by China’s statistics bureau, 53 out of 70 tracked major cities saw rising new home prices in November, compared with 35 cities in October.
In the first-tier cities, total home sales grew by 18.2% m-o-m to 5,097,000 square meters, with an average price contracted to RMB 14,223 per square meter. Beijing, Shanghai and Guangzhou finished the month with 18.2%, 25.5% and 20.1% monthly gains in home sales respectively, while that in Shenzhen fell 5.2% m-o-m. Buying sentiment in second and third tier cities also saw improvement, with total floor space sold in November recorded 21.4% m-o-m and 10.8% m-o-m gains respectively.
Along with improved sales figures in the residential property market, other indicators also reflected a bottoming out sentiment in November. Real estate investment for the January-November period totaled RMB 6.48 trillion, up 16.7% compared with the same period a year ago, and is 1.3 percentage points higher than that in January-October period. On the construction front, the year-on-year decline of newly started construction in first 11 months narrowed by 1.3 percent points to 7.2%.
As the Government shows no sign of relaxing its cooling measures in the foreseeable future, a full recovery of the property market remains remote. According to an official statement issued in mid-December, Chinese Government said it will keep existing measures in place in 2013, including home purchases restrictions and tightened mortgage criteria for investors, as an effort to keep prices under control. However, financial institutions and developers have turned more optimistic on the property market’s prospects. Moody’s, an international rating agency, in December revised its outlook for the property market from “negative” to “stable”, saying that the improving sales and greater access to funding will continue to support the market in the coming year.