Upswing in the Real Estate Market Results in Increased Housing Demand

In February, the effect of relevant policies gradually emerged, and housing demand was further released——

Positive changes in real estate market

According to data recently released by the National Bureau of Statistics, the sales prices of commodity housing in 70 large and medium-sized cities rose in February as a whole. According to Sheng Guoqing, chief statistician of the Urban Department of the National Bureau of Statistics, in February, with the gradual emergence of policy effects and the further release of housing demand, the number of cities in which the sales prices of commercial housing rose month-on-month in 70 large and medium-sized cities continued to increase. The overall sales price rose month-on-month, the sales price of commercial housing in first-tier cities rose year-on-year, and the year-on-year decline in second- and third-tier cities narrowed.

Data show that the sales prices of commercial housing in first-, second- and third-tier cities have generally increased month-on-month. In February, among the 70 large and medium-sized cities, the sales prices of new commercial housing and second-hand housing rose month-on-month in 55 and 40 cities, respectively, an increase of 19 and 27 from the previous month.

In February, the sales price of new commercial housing in first-tier cities rose by 0.2% month-on-month, the same increase as last month; the sales price of second-hand housing rose by 0.7% month-on-month, an increase of 0.3 percentage points from the previous month. The sales price of new commercial housing in second-tier cities rose by 0.4% month-on-month, an increase of 0.3 percentage points from the previous month; the sales price of second-hand housing turned from a decrease of 0.3% in the previous month to an increase of 0.1%. The sales price of new commercial housing in third-tier cities changed from a decrease of 0.1% in the previous month to an increase of 0.3%; the sales price of second-hand housing changed from a decrease of 0.4% in the previous month to a flat level.

According to Sheng Guoqing, the sales price of commercial housing in first-tier cities has increased year-on-year, while the year-on-year decline in second- and third-tier cities has narrowed. In February, among the 70 large and medium-sized cities, 14 cities had a year-on-year increase in the sales price of new commercial housing, one city less than the previous month; 7 cities had a year-on-year increase in the sales price of second-hand housing, an increase of one city from the previous month.

In February, the sales price of new commercial housing in first-tier cities rose by 1.7% year-on-year, a decrease of 0.4 percentage points from the previous month; the sales price of second-hand housing rose by 1.0% year-on-year, an increase of 0.1 percentage points from the previous month. The sales prices of new commercial housing and second-hand housing in second-tier cities decreased by 0.7% and 2.9% year-on-year respectively, 0.4 percentage points lower than that of the previous month. The sales prices of new commercial housing and second-hand housing in third-tier cities fell by 3.3% and 4.4% year-on-year respectively, and the decline rate was 0.5 and 0.3 percentage points lower than that of the previous month.

According to Fu Linghui, spokesperson of the National Bureau of Statistics, since the beginning of this year, under the influence of a series of policies, as the economy has gradually recovered and warmed up, the real estate market has undergone some positive changes, mainly reflected in the obvious narrowing of the decline in market sales. In the first two months, the sales area of ​​commercial housing decreased by 3.6%, which was significantly narrower than that of the whole of last year; the sales volume of commercial housing decreased by 0.1%, which was also significantly narrowed. At the same time, real estate companies are also improving in terms of funds in place, start of construction, and investment. Investment in real estate development fell by 5.7%, compared with a 10% drop for the whole of last year. Generally speaking, the real estate market is still in the adjustment stage. With the gradual improvement of the economy and the improvement of market expectations, the real estate market is expected to gradually stabilize.

Xu Xiaole, chief market analyst of the Shell Research Institute, believes that the various policies and measures introduced since last year have effectively protected the legitimate rights and interests of home buyers, and the reasonable financing needs of real estate companies have also been met. The adjustment and optimization of policies in different cities has reduced the cost of home purchases and strengthened the housing market. consumer confidence. The good start of the improvement in the liquidity of the real estate market has laid the foundation for effectively preventing and defusing the risks of high-quality leading real estate companies this year.

Ni Hong, Minister of Housing and Urban-Rural Development, said recently that overall, one should have full confidence in the stable and healthy development of the real estate market. First, from the perspective of market supply and demand, the prevention and control of the new crown epidemic has achieved a decisive victory, and the optimization and adjustment of prevention and control policies have had a positive impact on both ends of real estate supply and demand. On the supply side, construction workers and construction materials can enter the site smoothly, and the resumption rate of housing projects has greatly increased; on the demand side, the number of house inspections at sales offices has increased significantly, and the transaction volume has also improved significantly.

Second, judging from market expectations, the sales of commercial housing nationwide in the first two months of this year, including first-hand housing and second-hand housing, ended 13 months of negative growth. Although housing prices in 70 large and medium-sized cities rose and fell, the overall price was stable. At the same time, the work of guaranteeing the delivery of buildings is advancing steadily, which effectively protects the legitimate rights and interests of home buyers, and the reasonable financing of real estate companies has gradually improved, and market confidence is recovering.

Third, from the perspective of policy implementation, strong support policies for the purchase of the first set of housing and reasonable support policies for the purchase of the second set of housing have been introduced and are being implemented to bear fruit.