China’s home prices rose at the fastest pace in seven months in May, as the property market continues its rapid recovery from the coronavirus shutdowns.
New-home prices in 70 major cities, excluding state-subsidized housing increased 0.49% last month which was up 0.42% gain in April.
Values in the secondary market, which is largely free from government intervention, gained 0.24% the fastest pace in seven months.
Interest in property is rekindling as China returns to business as usual, with prices increasing in small, medium and large cities. With the central bank opening the taps on credit to support the economy, housing is again seen as a safe place to store wealth.
Residential last month exceeded pre-virus levels in almost half of the 28 cities monitored by China Real Estate Information Corp and hit a two-year high in cities such as Shanghai and Hangzhou.
This increase in home prices is not a surprise to me. I still recalled that one of my clients who is a Chinese National sending me a photo of individuals queuing up to purchase properties when the circuit breaker in China was lifted.
In our local market, prices and sales volume have also picked up in June and investors have been visiting show flats, I am thankful that for the month of May I was awarded the Champion Private Property Transactor as well as 1st Runner’s up Project Salesperson in Propnex. All of which are because of my clients’ support.
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