Previously, real estate investment was dominated by the Northern School and the Southern School. The Northern School were the coal barons who funneled their huge profits into massive real estate speculation. The Southern School were the group buyers from places such as Wenzhou, who would pool their assets and then buy out whole floors or buildings in cities such as Shanghai.
Now, high net worth individuals from technology and other industries, often benefiting from new found stock wealth, are diversifying into real estate.
Ya Ho agency Guo Yi, director of marketing, said more analysis, in the short-term effect of real estate control policies prop up the market, the stock market will be the next stage of the overflow funds pulled in property transactions promoter. “Behind the stock market fluctuated inevitably lead to flee early profit funds, compared with the high-risk index, the property market will become the preferred curing steady after speculative assets, increasing the value.” This is precisely the high net worth population follow the “Cross Asset Allocation popular choice “concept.
In this regard, Hilton Chan said a big difference with the previous round of the property market is, in addition to policy factors, the real role is actually a “cross-cycle asset allocation” theory. In the past year, China’s stock market has experienced a wave undoubtedly high. The market value of 23 trillion yuan from the beginning of 2014 soared to 47 trillion yuan in the first quarter of this year. It rose from less than 2000 points all the way to today’s 5100 points.
“For the future, or that the next six months time, the stock will rise or fall, judgment given by different people may vary, because we have not yet reached a consensus. But for the coming year, the stock will decline hoisting and steering Many people have consensus. “Hilton Chan believes that during this time, so there will be more and more people to come up with part of the proceeds to invest in the stock market in real estate, the stock market to earn income pre-cured,” but this is undoubtedly will further push high transaction volume and price tier cities of the property market in the short term , especially in first-tier cities in the heart of the property, it will surely be a new round of blitz. “
Beijing existing home sales increased 142% yoy in the first two weeks of June. New home sales were up 57% yoy. Prices are up as well due to luxury apartments making up a larger portion of sales:
Meanwhile, the first two weeks in June in Beijing commercial housing transaction price reached 28,556 yuan / square meter, up 4.2%. Transaction structure, the proportion of high-end rose significantly.
Bifurcation intensifies. First tier cities such as Shanghai and Shenzhen saw sales up 30% or more. Third tier sales are down:
“Although first-tier cities turnover rose, but appeared in the third-tier cities 22% down, the overall market is still not balanced very clear. The national real estate market is difficult to occur in the case of volume and price Qi Zhang. The differentiated real estate market has led to policy stimulate differentiation effect. “Dawei said,” to enter in June, although the residential market turnover compared with the end of May has a rebound, but the performance is still more active second-hand housing market transactions performed relatively well. Centaline’s 21 cities data show second-hand housing transaction area last week were down 17%, but lower than the first week of May rose by 6%, and still maintain a single week volume of 250 million square meters. Since March this year, the housing market has continued for three months by turnover month rise, approaching a high level at the end of last year, is expected in June to remain current transaction warming. “
