Bejing Second Hand Housing Market Continues on Downturn in December
Last month, Beijing’s second-hand housing market recorded 8,483 transactions, making it the sixth consecutive month to see a drop of 10 thousand units. According to the data, 125,992 second-hand housing units were sold in the first 11 months of this year. Analysts have set a market forecast of 130,000 units for the whole of 2017. This news comes as a shock to many investors.The impact, particularly to Beijing's apartment rental market, is enormous.
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Although some downturn was expected in the face of recent government regulations, the drop has been more severe than anticipated. In 2016, by comparison, there was a total transaction volume of 270,000 units. There has been a drop of more than 50% year-on-year in 2017.
Prices, however, have risen slightly. The average price for second-hand housing rose by 0.48% from 57,662/sqm in November to 57,936/sqm in December. December saw a year-on-year increase of about 0.59%.
At the same time, the market has been set reeling by another piece of news. On December 11th Peking University’s REITs group (Real Estate Investment Trust Fund) released a report that predicts that the market value of China’s rental housing REITs will grow to reach between 520 billion and 1 trillion. A large scale market entry of new collective rental housing projects is expected to hit the market within the next couple of years. The prospects are huge. Many market insiders are already preparing for the rental housing market boom.
Maxviewrealty will continue to report changes to the market. Maxviewrealty, as the historic Beijing real estate agency, has rich experience and advanced processes in housing rent in Beijing.
*Disclaimer: All of the above data is for reference only. Specific unit prices may vary.*
