Transaction volumes in China’s luxury housing market is expected to increase this year following the lifting of curbs on pre-sale licenses, according to industry analysts quoted in the media.
Notably, Beijing and Shanghai gave the green light for the pre-sale of high-end housing projects last month after introducing curbs in October and November respectively.
Gao Shan, vice-general manager of Yahao Real Estate Selling & Consulting Solution Agency, noted that the licence suspension caused an accumulation of demand which will fuel transaction volumes this year.
In Beijing, primary market transaction volumes of luxury homes fell 25 percent in 2013 from 3,567 units in 2012, based on data from Landz Realtor.
Meanwhile, prices are expected to rise at a slower pace as a higher number of wealthy families look abroad.
Property consultancy DTZ said prices jumped by almost 25 percent in 2013 to an average of 52,129 yuan (S$10,905) per sqm.
While the lack of supply of luxury homes and the growing number of rich individuals will continue to push up prime housing prices this year, its growth will not be as quick as before as more are lured by cheaper homes overseas and the lax migration rules in countries like Spain, Hungary, Portugal and Malaysia.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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