Hong Kong second-hand market is not the only one getting a round of applause this week. Deals in the secondary home markets in Beijing and Shanghai also increased last month and the reason for this could be the government's strong support to the industry. Recently, the government has released a series of supportive policies which have made a positive impact on home sales, a report from SCMP.com revealed based on SCMP - Century 21 index.
Century 21 China Real Estate, partner of the South China Morning Post released a statement and it said, "Homebuyers' sentiment was boosted towards the end of the year by a number of supportive policies such as five interest rate cuts and mortgages on second homes being treated in the same way as the first ones as long as the buyer has paid off the first loan."
According to the report, the asking price for existing properties in Shanghai increased 2.2 percent month from month in December. This was the biggest increase in a period of two years. Beijing on the other hand had an increase of 0.7 percent with a gain of 0.01 percent since November.
"Demand in Shanghai got released at the end of the year as both the rates of commercial mortgages and the housing provident fund loan hit historic lows," Century 21 further said. "Transactions for large units appear to be on the rise after the government allowed families to have a second child."
Secondary home price index according to SCMP - Century 21 increased from 165 to 167 in November and was also up from 154 to 157 in Shanghai.
The People's Bank of China has reduced its interest rates to attract more home buyers as well. There is also much expectation in the air as authorities may further come up with price cuts this year to be able to revive the real estate market to bolster economic growth.
"The market will be more stable in 2016 after the full release of demand last year. Meanwhile, market momentum tends to have calmed," said Century 21. "We expect the growth in prices and transactions in Beijing and Shanghai will be mild this year."
