In March, the average price of residential housing in 100 cities decreased by nearly 90% YoY, and 16 cities decreased by more than 10%

China Paint Network
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Yesterday, according to the latest data monitored by the China Index Research Institute, the average price of housing in 100 cities (newly built) in March 2015 was 10,523 yuan per square meter, down 4.35 percent year-on-year, an increase of 0.51 percentage points; Reporters noted that 87 of the 100 cities in the city residential prices fell year-on-year, of which, Guilin, Sanya and other 16 cities, housing prices fell by more than 10%. In this regard, the China Index Research Institute believes that from the overall market performance, March "Little Yangchun" as scheduled, the overall environment of the property market is good, housing enterprises to adopt a positive sales strategy, destocking pace accelerated, inventory fell slightly, although the average price of residential housing in 100 cities still fell slightly, but the decline has narrowed. 87 city house prices fell year-on-year According to data monitored by the China Index Research Institute, 87 out of 100 cities reported year-on-year declines in residential prices in March 2015, the same number as the previous month. In addition, the average price of residential (newly built) homes in 10 major cities, including Beijing and Shanghai, was RMB18,938/m2, down 0.1% month-on-month, and continued to fall year-on-year, up 0.74 percentage points from the previous month to 3.19%. In this regard, Zhongyuan Real Estate chief analyst Zhang Dawei analysis, from the national market, March is still in the recovery period after the Spring Festival. Other analysts told reporters, which means that the current market inventory is still very high, sales pressure does not diminish. It is worth mentioning that third- and fourth-tier cities are still the hardest hit by falling house prices, and the average price of new-build residential sales has a larger margin of decline. Guilin, Sanya and other 16 cities fell between 10% and 20%, Liaocheng, Nanchang and other 40 cities fell between 5% and 10%, Dongying, Weifang and other 27 cities fell between 1% and 5%, Yichang, Kunshan and other 4 cities fell within 1%. However, among the four first-tier cities, Shenzhen and Shanghai rose 0.59 per cent and 0.41 per cent respectively, while Beijing and Guangzhou fell 0.11 per cent and 1.39 per cent respectively. Chen Wei, executive director of the China Real Estate Data Research Institute, believes that house prices in first- and second-tier cities are expected to rise higher than in third- and fourth-tier cities, and that prices in Beijing, Shanghai and other regions will rise around June this year. The New Deal promotes the steady development of the property market In fact, another set of data on turnover has all reflected the activity of the current market. According to statistics from the Central Plains Real Estate Research Center, in March 2015, the country's 54 major cities recorded a rapid recovery in transactions, with 228,400 units traded, up 80.64 percent month-on-month and up 5.7 percent from 216,000 units in the same period in 2014. Zhang Dawei said that the rapid recovery of market transactions, especially in late March under the central bank's second-home loan policy loosened, is expected in April and even the entire second quarter, the property market turnover will also rise rapidly, the increase in major cities is expected to be very obvious. And from the policy impact, recently, the government issued in the land supply link, credit policy, transaction tax and other types of stable housing consumption rescue policy. In this regard, the China Index Research Institute believes that some of the policy easing is even close to 2009, by reducing the down payment ratio, reduce the second-hand housing transaction tax burden, optimize housing and land supply, help inventory digestion, promote the stable development of the real estate market. Looking to the future, all kinds of stable consumption policies related to real estate have been basically complete, if cities can be effectively implemented and implemented, will strongly stimulate the market to become more and promote the stable and healthy development of the property market. In view of this, Chen said, "This year's overall house price growth should be 7%-8%, we did a study, GDP (gross domestic product) to reach 7%, real estate correlation must also reach this value, otherwise it will drag down GDP." Zhang Hongwei, director of the research department of Tongze Consulting, believes that the city's large land supply and the resulting large inventory is still not digested, the market performance is still oversupply, the market fundamentals of these cities in the short term is difficult to improve. Even if there is a second home loan down payment, business tax to reduce the exemption threshold and other "330 New Deal" rescue policy, this year's market fundamentals are difficult to say that there is too much to show. Zhang Hongwei further said that from the second quarter of the housing market opening performance, whether it is the property market to inventory pressure, or developers focused on pushing the market brought about by competitive pressure, the second quarter of the property market still need to do "quantity" article. For the development of Yamants, in the second quarter of this year or even the whole year, still adhere to the market strategy of inventory.