Strong Golden Week home sales beat in key cities: Citi

Mainland China saw robust transactions across primary and secondary housing markets during the Golden Week holiday, with policy stimulus gaining broader and more consistent traction in the existing-home market, according to Citi's research.

New home sales across 13 cities advanced 41 percent to 2,812 units amid divergent underlying performance.The top-line gain was driven by a small group of cities including Hangzhou's 347 percent surge, Nanjing's 259 percent and Beijing's 145 percent. 

While performance elsewhere was weaker: Guangzhou fell 2.2 percent, Shanghai dropped 7.2 percent and Shenzhen contracted 42 percent, partly due to limited supply. Chengdu also posted a 40 percent decline. The wide dispersion suggests that the primary-market recovery has yet to become broad based, the research said.

Resale volumes across 26 tracked cities rose 53 percent from a year earlier to 27,720 units, with all cities notching increases.Tier-1 and 2 cities led a broader-based recovery, with Qingdao surging 111 percent, Nanchang 97 percent, Shanghai 75 percent, followed by Beijing 51 percent, Shenzhen 40 percent and Guangzhou 35 percent, it added.

The research came after China's mortgage subsidy for eligible first-home buyers took effect on October 1, designed to shore up domestic homebuying demand within the faltering property sector.

Frank Feng

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