Beijing's second-hand home prices fall for 8 consecutive months by 15%

Beijing's second-hand home prices fall for 8 consecutive months by 15 percent, with annual online transaction registration down 50 percent, the Beijing News reported Wednesday.

The second-hand home prices in Beijing peaked in April and then fell from May to December by 15 percent, according to market research institute of 5i5j.com, one of China’s major real estate agencies.

From May to November, the price indices of Beijing’s second-hand residential buildings fell month-on-month, indicated by the price indices of second-hand residential buildings in 70 large and medium-sized cities from the National Bureau of Statistics.

Beijing’s second-hand house online transaction registration volume was 136,237 in 2017, down 50 percent from 270,000 in 2016, statistics from 5i5j.com revealed.

“The direct reason of the price slide was unprecedented policy control,” said Hu Jinghui, vice-president of 5i5j.com.

In March 2017, Beijing lifted the down-payment ratio for second homes to 60 percent and suspended housing loans with a maturity of 25 years or more.

Since October 2016, the government has implemented a slew of measures to cool runaway housing prices, such as restrictions on home purchases and increased minimum down-payment requirements.

The harsh curbs reflect Chinese government’s determination to step up housing system reform and foster a long-term market mechanism as the top authorities have constantly reiterated that "houses are built for living in, not speculation".

In terms of the property market in 2018, Beijing’s second-hand home price is still expected to decline so as to stimulate purchase because potential buyers are more rational when they have to pay high loan rate and more down-payment, Hu said.