2015-05-05

May Day Sales Surge 91% In Beijing

According to one data collection firm, Beijing new home sales over the May Day holiday jumped 91% over 2014 levels. Existing home sales climbed 58.1%. Inventory heading into May is at a 10-month low. 我爱我家, a realtor, said their sales increased 272% and area sold increased 262%.

To put the numbers in perspective: 324 new homes were sold over the holiday. Back in 2013, 803 new homes were sold and about 530 were sold in 2012. Numbers have improved and optimism is way up from depressed levels, but this isn't the third coming of the real estate bubble. Yet.

iFeng: 成交大涨91.7% 五一期间北京楼市明显回暖

The general opinion is that prices in Beijing have turned the corner and are rising again.

Shortly after the May Day holiday, on first-tier cities real estate market to pick up news, it will be blowing.

At least from the media and public opinion level, it has confirmed the first-tier cities into a new round of rising channel. Late last year, the market is still on the market and the majority opinion pessimistic or cautious, think of more than six months after they quickly reached a consensus.

iFeng: 5月或为房价反弹“拐点” 房价上涨将板上钉钉

Price follows volume, so some increase is likely. How much will depend on whether the rise in sales can keep up or settles into a new normal. It's worth remembering 我爱我家 vice president Hu Jinghui from last month (covered here)
Nevertheless, Hu Jinghui, the market outlook is still not optimistic. He said: "Many colleagues say that real estate in the spring came, I think this is unlikely. The policy will stimulate trading volume in the second quarter......Under the current economic new normal, economic stimulus effect of real estate may last for two or three months."

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