China'sreal estate transactions by value and area both slowed substantially in November. Photo: Reuters
China'sreal estate transactions by value and area both slowed substantially in November. Photo: Reuters

Housing sales hit a wall on renewed curbs

November saw a substantial slowdown in transactions, both by value and area, following government's new policy direction

December 13, 2016 5:39 PM (UTC+8)

It’s official now: real estate transactions, both by value and area, slowed substantially in November after Beijing stepped up tightening measures across the country to prevent property markets from toppling over on excessive speculation.

New property sales came in at 1.102 trillion yuan (US$ 160 billion) and a total of 154.91 million square meters last month, expanding just 13.3% and 7.9% from a year earlier, respectively.

That pace of expansion may appear robust, but in fact the figures are considerably lower than the 41.2% and 26.8% increases in sales value and area during the first ten months of 2016, compared to the year-earlier period.

The Chinese government instigated cooling measures for the housing market in October, raising down payments on mortgages and disqualifying home buyers from new bank financing to acquire multiple properties.

Concerns have also flared regarding China’s ability to maintain satisfactory growth for the coming year if it completely curbs the extraordinary housing boom that was elemental in propelling the economy away from a continued slowdown during 2016.

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