China March Survey Reveals A Rise In New Home Sales

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China March Survey Reveals A Rise In New Home Sales

China: March Survey Reveals A Rise In New Home Sales

According to the latest report, new home sales in China rose sharply amid supporting policies and an increase in demand. Overall, 14 Chinese cities were surveyed in this report, which adds more credibility to it.

As per the report, new home sales in China increased by 55.07% m/m. In February, the new home sales growth was recorded at 31.9%, which suggests an uptick in demand.

The data was released by China Index Academy, which is one of the independent and largest real estate researchers.

Real Estate Sector To Boost China's Recovery

Beijing, which is classified as a tier-one city in China, saw the fastest growth in new home sales. In total, an increase of 73% was reported in Beijing during March 2023.

Similarly, the new home sales growth in 2nd-tier Chinese cities was 54.2%, while the 3rd-tier cities were around 28.6%.

Considering how the real estate sector is a key pillar in China's growth, this will be good news for the Chinese economy. Earlier, the same sector was facing tough times as several big-name developers declared bankruptcy.

In addition, mid-2021 also saw much stalled construction work in many housing projects across the country.

By the end of 2022, Chinese policymakers introduced a bailout package aimed at improving project completion and to improve sales.

It appears that the government's policies to support the real estate sector of China have finally started to show results.

During Monday, the real estate sector gained around 2.4% which is a sign of improved market sentiment.

According to some experts, the abandonment of China's zero-COVID policy is also boosted the sales of new homes in Beijing & other cities.

Overall, the pace at which the price of new homes increased in China is one of the fastest in the last 9 months. However, investors need to be cautious it is all due to the stimulus packages. And once that dries out, we will get to see the real picture of China's real estate sector.

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