Cross-posted from Investing in Chinese Stocks.
Sales in 90 percent of Chinese cities fell in the first week of April. In 28 key cities monitored, sales fell an average of 23.2 percent.
Average sales decline in first-tier cities: 27.4 percent. Beijing declined 30 percent. Shanghai fell 17.2 percent. Shenzhen decreased 31.1 percent and Guangzhou tumbled 37.8 percent.
The average decline in second-tier cities was 20.9 percent.
Third-tier city sales: down 35.1 percent.
Centaline reports similar, though less severe data and blames it on March being a peak month for activity:
On the same day, the statistics released by Centaline Property Research Center also shows that the market turnover has dropped slightly, early April 54 City 97600 total contracted residential units, a 112,800 units in March down 13.5%. Among them, the first-tier cities fell more obvious, a decrease of 18%. Shanghai, Shenzhen, Beijing and other cities have different degrees of decline.
For the property market turnover decline, Centaline Dawei, chief analyst believes that the key cities in March and daily room rates climbed to a new high, and rose to the most in history. “The market shot up after the somewhat lower in April, but still high. Which, by the attention of the market in Shanghai and Shenzhen, after harsh New Deal, appeared last week, markets dropped significantly.” He said.
iFeng: 全国楼市现降温信号 三线城市房价降幅最大
The data is weekly and deserves a grain of salt as always, but it is surprising for the third-tier to be cooling more than top cities. First-tier cities implemented strict buying restrictions and have extremely difficult comparisons due to sales spikes in March; third-tier cities are still easing yet having no luck.
Or perhaps they are, two hours after a report showing tumbling home sales in third-tier cities during the first week of April, an article touting strong sales in March was out.
“From March 36 major cities we monitor housing turnover ring up than across the board.” Vice President Huang Yu told reporters, in which second-tier sales area turnover rose 155.68% month-on-month, an increase of 91.31% year-on-year, and there are four cities up more than 300% yoy; third-tier cities sales area turnover rose 84.42% mom, an increase of 83.23% yoy, Baotou sales rose over 300% yoy.
Data from China Vanke, gold, Poly and other real estate listed companies to disclose the point of view, the same cozy warmth.
Among them, the real estate enterprises Vanke March sales area of 2.398 million square meters, the sales amount of 33.61 billion yuan. An increase of 93.2% and 128.0%, respectively, growth of 100.5% and 109.7%. Golden Group in March contracted area of 715,000 square meters, an increase of 95.4%; contract amount of 9.85 billion yuan, an increase of 143.2%. Poly Real Estate in March contracted area of 1.6583 million square meters, an increase of 159.49 percent; a contracted amount of 22.234 billion yuan, an increase of 196.98%.
iFeng: 二三线城市成交全线上涨 楼市去库存渐见起色 (Second- and Third-Tier Sales Rise)
We shall see.
