Property sales hit new high

ApropertyconstructionsiteinNanjing,capitalofJiangsuprovince. [File photo/China Daily]

Housing sales in May hit the highest level seen in past six years' same period, as a string of policy easing filtered through, and buyers' purchasing willingness strengthened significantly, according to a research agency.

New home sale (in floor space term) in 30 cities monitored by E-house China R&D Institute rose 15.5 percent in May over April, higher than sale data recorded in past six year's May, according to the institute's latest report on Monday.

In year-on-year term, sale rose 34.9 percent. Sale rose in 27 of the 30 cities.

Sale in first-tier cities surged 82.7 percent in May over a year ago, after a 59.2 percent rise in April. Second-tier cities rose 25.3 percent and third-tier cities rose 32.1 percent, the report said.

Shenzhen led the nation with a 148.4 percent year-on-year rise, while Shanghai followed with a 118.3 percent rise.

Average new home price in 100 cities in May rose 0.45 percent month-on-month to reach 10,569 yuan($1,706) per square meter, according to China Index Academy, the research unit of SouFun Holdings Ltd. Except a small up-tick in January, this price index has been declining for the past 12 months.

Behind the surge are several stimulus policies since the end of March, including greater support for second-home buying, interest rate and reserve requirement cut. In addition, more than 100 cities have adjusted their housing provident fund policies, making it easier to withdraw the fund to buy homes.

For example in Beijing, from Monday housing provident fund payers could withdraw a maximum 1.2 million yuan for their first home, and a maximum of 800,000 yuan for their second-home. Previous policy set a maximum per capita living space, exceed which payers could not borrow.

"The rising sale reflected increasing willingness to purchase houses. Uneased by rising volatility, many investors are transferring fortune they earned in the stock market to property market. It is expected sale in June will be at a high level, especially in largest cities," said Yan Yuejin, an analyst with E-house China R&D Institute.