Property sales set record of $1.48t in first 11 months of 2016: NBS data

Source:Global Times Published: 2016/12/14 16:08:39

Housing sales in the first 11 months topped 10.25 trillion yuan ($1.48 trillion) in China, the first time that the number has surpassed 10 trillion yuan, data from the National Bureau of Statistics (NBS) showed on Tuesday.

The record high sales stemmed from the ample liquidity in the market that resulted from several interest rate and reserve ratio cuts in 2015, analysts said.

But the hot sales in the first 11 month of 2016 does not mean that the trend will continue. Major cities have rolled out policies to curb speculative demand since September, which may lead to further corrections, analysts said.

On September 30, the Beijing Municipal Government rolled out stricter down payment rules to cool the overheated local housing market. Since then, more than 20 cities such as Tianjin and Shenzhen in South China's Guangdong Province, have rolled out policies with the same goal.

Beijing's real estate market has already shown signs of cooling over the past two months, recent media reports said.

NBS data also pointed to a possible cooling trend in the future. Despite the record sales total, sales growth over the period slowed from earlier in the year. Housing sales in the January-November period rose 37.5 percent year-on-year, down from 41.2 percent in the first 10 months of the year.

Also, real estate investment in the January-November period totaled 9.34 trillion yuan, up 6.5 percent year-on-year, 0.1 percentage point lower than the ratio in the first 10 months, NBS data showed.

Posted in: ECONOMY

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