Stimulus Measures and Property Market Dynamics in China’s Major Cities

Sunday, 13 October 2024, 23:30

Stimulus measures aimed at revitalizing China's property market have sparked increased activity in major cities. Key projects like Oriental Courtyard have received significant interest, yet doubts about market sustainability persist.
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Stimulus Measures and Property Market Dynamics in China’s Major Cities

Stimulus Measures Boost Property Confidence

In a notable shift, stimulus measures introduced by the Chinese government have stimulated property sales in key urban centers like Beijing and Guangzhou. Inside a bustling sales office in Jiuxianqiao, prospective buyers flock to place bids on Oriental Courtyard, a new luxury development by China State Construction Engineering Corporation. With an average price of 125,000 yuan per square meter, demand has surged, reflecting a rebound in consumer confidence following aggressive policy adjustments.

Emerging Trends in Urban Real Estate

As transactions soar, mortgage rates are being slashed, and down payment requirements eased, suggesting that policy bazookas are taking effect. In Shenzhen, a launch by Shum Yip Group has seen overwhelming subscription. Even smaller cities like Chengdu and Hangzhou are similarly easing restrictions, ushering in a wave of optimism.

  • New home transactions increased by 65% in top cities.
  • Growth rates hit 261% in Shenzhen.
  • Long-term sustainability of growth is under question.

Expert Opinions on Market Sustainability

Despite the current frenzy, experts warn that the positivity may be fleeting. Alfredo Montufar-Helu cautioned that while trends are encouraging, structural market imbalances remain a significant hurdle. A realistic outlook suggests a correction ahead, urging stakeholders to remain vigilant.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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