Sales in 30 major cities in China triple with coronavirus crisis abating
China’s private housing market is springing back to life as more sales offices reopened across the country following a nationwide shutdown, saving home builders from a deeper financial slump this year. Transactions in at least eight large cities, including Shenzhen, Chengdu, Fuzhou and Hangzhou, indicated buyers have returned in recent weeks, with volume surpassing the average levels in the final quarter of 2019, according to China Real Estate Information Corporation (CRIC).
The rebound comes as a relief to the industry after measures to contain the coronavirus outbreak kept buyers away and almost froze the market. Developers have since offered discounts to boost sales and avert a liquidity crunch as factories resumed production and lockdowns eased in signs the health crisis is abating. Home sales in 30 large and medium-sized cities, a bellwether for the nationwide trend, reached 8.6 million sq m this month, more than treble the 2.33 million sq m recorded in February, according to Wind Information.
The signs are encouraging as more property companies reopen their sales offices and people return to the city for work, bringing potential buyers along with them. More factories have resumed production and China has started relaxing the lockdown in the epicentre of Hubei province.