Buyers look to smaller cities, home prices pick up in China
China’s new home prices are currently rising with an increasing number of buyers. Prices in China’s 70 major cities rose 0.5 percent in April from the previous months. The smaller cities are slowly converted into modern urban cities wherein many facilities are developing as well.
Analysts also point to political and economic developments that have drawn new investors into markets away from the bigger centers.Real estate directly affects 40 other business sectors in China and is a major driver for the economy.
Some major cities such as Shanghai and Hangzhou have seen a surge in the marketing of new home developments over the past two months as authorities reduced curbs, with developers also eager to ramp up the launches to boost their cash flow.However, growth is expected to cool with a government crackdown on risky borrowing triggering worries about future financing, indicating growing liquidity pressure facing Chinese property developers.
China’s new home prices rose for their 35th consecutive month in March, with more cities reporting growth as the government supported demand from first-time buyers. The April figures are due on coming days.