China News Service, Beijing, August 24 (Reporter Pang Wuji) A report released by the Yiju Real Estate Research Institute on the 24th showed that in July, the inventory scale of China's 100 cities increased by 7% year-on-year, and the pressure on destocking increased.
The report shows that as of the end of July, the total inventory of newly built commercial housing in 100 cities across the country was 480.31 million square meters, an increase of 0.2% month-on-month and 6.9% year-on-year. The inventory of Baicheng has shown a positive year-on-year growth trend, and there is a risk of inventory backlog and slow sales.
From the perspective of supply and demand, in July, the supply of newly built commercial housing in 100 cities was 55.64 million square meters, while the transaction volume was 54.49 million square meters, showing a "supply exceeding demand" situation.
Comparing historical data over the same period, it can be seen that the pace of launches in major cities in July this year was not slow, and new supply remained active despite the overall loose pre-sale environment. Although the market transaction data also showed a positive year-on-year growth trend, the pace was slightly slower than the supply data, which led to an oversupply situation in the market in July.
In terms of different cities, as of the end of July, 62 out of 100 cities had positive growth in inventory year-on-year. Among the top 10 cities in terms of growth rate, second-tier cities have the largest number, including Hangzhou, Zhengzhou, Hohhot, Qingdao, Nanning, Chengdu, and Kunming.
Analyzing the reasons, Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said that the sales market in some cities this year is obviously not as good as last year, and some cities have relaxed the pre-sale standards, which led to an increase in the number of listings.
From the perspective of inventory-sales ratio, in July, the inventory-sales ratio of newly built commercial housing in 100 cities, that is, the inventory digestion cycle, was 11.7 months, which also means that it will take 11.7 months for the market to digest these inventory.
At present, Baicheng has come out of the stage with the greatest inventory pressure. In the first April of this year, the destocking level of the Baicheng property market was hit by the epidemic, and the destocking cycle rose sharply, even exceeding the one-year level. Since May, the pressure on inventory de-allocation has eased, and it has now fallen to a level below one year. (Finish)