According to a private survey released on Monday, new home sales increased for the third week in a row in 16 Chinese cities as demand was stabilized by the removal of Beijing’s zero-COVID policy and additional support measures.
According to China Index Academy, one of the largest independent real estate research organizations in the nation, sales by floor area increased 7.9% between February 12 and 18 compared to the previous seven days. Weekly growth for Feb. 5–11 was 40.9%.
The tiny increase in national home prices in recent weeks was mirrored by sales gains in the cities, providing another proof that the sector, which makes up about a fourth of the economy, is stabilizing despite the patchy recovery.
The statistics revealed that a decline in transactions in first-tier cities was the cause of the slowdown in the rate of sales growth. Sales in Shanghai decreased by 20.2% between February 12 and 18 after increasing by 103.8% the week before.
To increase demand and stimulate sales, local governments have loosened restrictions on homebuyers and real estate developers. These measures include lowering mortgage rates and supporting businesses’ financing. Also, several communities have loosened the requirements that builders only display completed homes for sale.
