San Diego, CA (PRWEB) October 09, 2012
REMI issued its observations on the disappointing sales figures produced during China’s “Golden Week,” and cautioned that it may harm home prices as the Chinese housing market worsens.
The Golden Week in China is a seven-day national holiday which began last week. Every Chinese citizen gets three days of paid vacation, along with extended weekend for a full seven-day vacation. China hopes each year that the week will bring increased tourism, travel and real estate spending. This year the numbers were mixed; Chinese tourism and attractions such as duty-free shopping posted tremendous sales numbers, but Hong Kong’s luxury real estate market seems to have weakened. The summer showed promise in Chinese real estate postcard sales, but during Golden Week about 70% fewer sales transactions took place than the first week of September.
The study that produced these findings, reported on by Shanghai Security News, focused on fifty-four cities, including Beijing and Guangzhou. Statistics from Guangzhou, the capital of the Guangdong province, indicated that Golden Week sales totaled 490 units; that figure is 272 units less than sales from the same period last year, a 35.7% decline in sales. Beijing had similar trouble, despite the extremely well-attended presentation of Shanghai Real Estate in Golden Week exhibitions. However, a similar study by the China Real Estate Index System (CREIS) shows some good news: home prices in major Chinese cities increased by just 0.17% in September. Chinese officials have been struggling to control housing prices in major markets, hoping to prevent out-of-control inflation that could threaten the market’s stability.
Domestically, investors and owners of beachfront home rentals are watching China’s housing market carefully. China’s economy, a major force on the worldwide stage, is heavily invested in housing, and the Asian world is still recovering from the 2005 housing crash that sent home prices in the People’s Republic skyrocketing. The modest growth of sales numbers and the successful control of prices in major cities should be of comfort to American and Chinese investors alike.
The Real Estate Marketing Insider issued a statement on the housing and sales figures from China’s recently-concluded Golden Week. Housing sales during the week, China’s national week of vacation, were unimpressive, but come after a summer of growth and successful efforts by Beijing to control home prices. Golden Week showed fantastic success for other markets, like tourism and duty-free shopping.
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Real Estate Marketing Insider provides online tips to real estate professionals regarding housing trends, news, and marketing tips. REMI is based in La Jolla, CA.