Second-hand housing remains in a downward spiral
Beijing, Shanghai, Guangzhou and Shenzhen decreased 0.6%, 0.1%, 0.3% and 0.2%, respectively, according to National Bureau of Statistics data
The price of new commercial residential buildings in first-tier cities increased slightly in November, while second-hand residential properties continued to decline, according to data released by the National Bureau of Statistics, The Paper reported.
The growth rate of new home prices in second-tier cities was flat from October, while that in third-tier cities fell.
Among the four first-tier cities, new commercial housing in Beijing and Shanghai rose 0.6% and 0.5% from October, while that in Guangzhou stayed flat and that in Shenzhen fell 0.2%.
Second-hand home prices in these cities continued to fall 0.4%, expanding the 0.2% decline in October. Beijing, Shanghai, Guangzhou and Shenzhen decreased 0.6%, 0.1%, 0.3% and 0.2%, respectively.
Zhang Dawei, chief analyst at Centaline Property Agency, thinks the price of second-hand housing represents the real market price, especially for first- and second-tier housing hotspots, as the proportion of second-hand housing transactions has exceeded half of the total market turnover.
The proportion of second-hand housing in Beijing and Shanghai has exceeded 80% of the total market turnover, Zhang added.