Chinese developers rush home sales amid turning point in sentiment

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Robust sales in October have depleted supply, with many cities to experience a 20 per cent drop on average in November, research institute says

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Yulu Ao

Published: 9:30am, 18 Nov 2024

Chinese developers are speeding up project launches, sensing a turning point in sentiment among homebuyers, after several rounds of policy support from the central government helped fuel demand and temper a slide in property prices.

Some 115 projects offering a total of 44,577 homes were approved for presale in the November 3 week, according to data compiled by 58 Anjuke Real Estate Research Institute, which tracks activity in 55 mainland cities, 30 per cent more than in the preceding week.

The nation’s top 100 developers sold 435.5 billion yuan (US$60.2 billion) worth of homes in October, 73 per cent more than in September, according to China Real Estate Information Corp. Home prices fell 0.5 per cent over the same period, the smallest drop since March, government data showed.

“There is great enthusiasm,” said Wei Kai, a marketing director at Centaline Property’s Shenzhen branch, one of the largest property agencies. “Sentiment is improving, so everyone is keen to launch their projects as soon as possible.”

An aerial view of residential project under construction in Nanjing in eastern Jiangsu province on November 15, 2024. Photo by AFP

The central government followed up on its September stimulus blitz by amending the deed tax structure on December 1. It will lower the cost of ownership and widen the access to bigger homes for more people. China will amend taxes on residential transactions to lower the cost of ownership and motivate a larger pool of buyers.