Strong Property Sales In China 2012

Strong Property Sales In China 2012To ensure meeting its GDP target, Beijing eased monetary controls in the second quarter of 2012, including twice interest rates cuts and a number of RRR reductions, leading to a full recovery in property market across the country in the second half of the year. As the buying sentiment keeps gaining momentum, the market finished the year of 2012 with a strong end. Over the year, aggregate sales of residential floor area totaled 1.05 billion square meters, up 0.18% year-on-year, while total property sales also stayed in last year’s level at about 1.18 billion square meters, up 0.26% year-on-year.

Fuelled by strong demand from end-users, national housing sales in December continued to rally, with total sales of residential floor space during the month rose nearly 50% month-on-month to over 169 million square meters. However, the increasing transactions of mid-and low-priced flats also dragged down the average housing price, which recorded a 2% month-on-month decline in December, to around RMB 5,118 per square meter. According to data released from National Bureau of Statistics, 54 cities, out of 70, saw prices of newly-built flats rose on monthly basis in December, compared to only 53 cities in November.

Home sales in first-tier cities in December went up by 39% month-on-month to 7.1 million square meters, and average prices dropped moderately by 5% month-on-month to about RMB 13,516 per square meter. For the 23 second-tier cities that we have been tracking, total housing sales went up 26% month-on-month to over 37 million square meters, while housing sales in the 13 tracked third-tier cities registered a 65% monthon- month growth to over 11 million square meters in December.

Along with the pickup in housing sales, some developers also reported better-thanexpected sales figures in December. Of which, China’s biggest developers, China Vanke, in earlier January said the company sold a total of 12.96 million square meters of both residential and commercial floor area in 2012, bringing in revenue of about RMB 141.23 billion, up 20.5% and 16.2% respectively compared with a year ago.