Beijing, May 5 (ZXS) -- In May, the property market in many parts of China continued the slight cooling trend in April, and real estate sales declined. Approaching the middle of the year, real estate companies are about to enter an important node of sprinting half-year performance, what will happen to the property market in June?
According to data released by the China Index Research Institute on the 26th, in the first three weeks of May, the average weekly transaction area of new commercial housing in 5 cities in China was 50.434 million square meters, down 4.17% from the average weekly level in April and up 7.17% from the same period last year. Among them, (May 9-5) the transaction area of key 15 cities increased by 21.50% month-on-month, and the year-on-year increase expanded slightly to 4.2%. From the absolute scale, the overall transaction area of new houses in 13 cities last week was still at the low level since this year, and the market adjustment pressure was greater, and the buyers' sentiment continued to fall. Recently, most of the real estate with a faster sales pace on the market are "upside down" in the core area (the sales price of new houses is lower than the surrounding second-hand housing prices), and the pressure of suburban real estate is greater.
According to the agency's data, in the first three weeks of May, the transaction volume of new homes in all tier cities decreased compared with the average weekly level in April, with first-tier cities falling by about 5% and second-tier and third- and fourth-tier cities falling by about 4%. Among first-tier cities, the transaction volume of new homes in Beijing in the first three weeks of May fell by nearly 15% compared with April; Among the second-tier representative cities, only a few cities such as Chengdu and Jinan increased month-on-month, and many cities decreased by more than 18% month-on-month.
The monitoring data of Zhuge Data Research Center also shows that from May 5 to May 1, 5,21 sets of new houses were transacted in key 15 cities, down 63634.4% from the same period in April. In terms of cities, except for Shanghai and Wuhan, the transaction volume of the remaining 15 cities fell from the same period in April. The activity of the second-hand housing market has also declined. From May 24 to May 13, 4,5 sets of second-hand residential buildings were transacted in key 1 cities, down 5.21% from the same period in April; The transaction level of second-hand housing in 10 cities fell across the board.
House prices are also cooling. According to monitoring data from the Weifang Research Institute and the Real Estate Professional Committee of the Urban Economics Association of China, house prices in four first-tier cities have all retraced in the first half of May 2023 (as of May 5). Among them, Shanghai house prices fell 5.15% in the first half of the month, Beijing fell 0.68%, Guangzhou fell 0.34%, and Shenzhen fell 0.52%. In addition, 0 second-tier cities, 11 third-tier cities and 26 fourth-tier cities all fell in the first half of May.
However, since the beginning of this year, the popularity of land auctions (land use rights auctions) in hot cities has increased significantly. Beijing, Hangzhou, Shanghai and other cities have a number of land parcels that have reached the bidding limit. According to statistics, since the beginning of this year, the proportion of land plots with land prices reaching the upper limit has exceeded 50%, which is in sharp contrast to last year's large number of land plots being auctioned and mainly sold at the reserve price. According to the data of the China Index, since the beginning of this year (as of May 5), the average transaction floor price of land in 23 cities has increased by 22.23% year-on-year, and the average premium rate has been 4.8%, an increase of 2.3 percentage points over the same period last year.
Chen Wenjing, director of market research at the China Index Research Institute, pointed out that the hot land market in hot cities is relatively hot, which will form a certain support for the local real estate market, but on the whole, the current adjustment pressure of the national real estate market is still increasing, and the stability of the market is still affected and constrained by a number of factors, including macroeconomic recovery prospects and residents' income expectations, house price decline expectations, and increased debt repayment pressure of individual housing enterprises.
Chen Wenjing believes that the current real estate market continues to repair the lack of momentum, and still needs strong policy support to stabilize buyers' confidence and expectations. There is room for optimization of real estate policies in core cities. As a key node for the mid-year sprint performance of housing enterprises, if sufficient confidence can be conveyed to the market, then under the vigorous promotion and promotion of housing enterprises, real estate sales in June are expected to usher in an improvement, which is also very important for the reconstruction of market confidence and expectations in the second half of the year. (End)