Unsold housing swells in China's first-tier cities
A view of Beijing. Weak demand and oversupply has dealt a blow to property markets in China's biggest cities. (File Photo/CFP)
Inventory of houses waiting to be sold in China has increased significantly since the transactions and prices of properties continued to decline in September and October, usually regarded as the traditional peak season for China's property market.
Figures from estate agency Beijing Centaline Property suggested the inventory of available houses for sale in China's first-tier have reached a new high. In September and October, the inventory of exiting properties and property projects in Beijing reach its highest level since June 2009, an increase of 250,000 units compared to before current purchase limits were implemented. It would take at least 22 months for the market to buy these even if no new property projects are built.
In October, Shanghai's housing inventory level reached a new high with 9.72 million square meters. The unsold new properties could stay on the market for 21 months. In Guangzhou, the number of unsold properties increased 11,000 in October compared to the same period last year, analysts with Hanyu Property said.
Experts predict that China's housing inventory level will peak in March next year. Centaline Property was cited by media in Taiwan as saying the trend of declinging property prices will become more pronounced over time. Property prices may decrease since demand has been weakened by the government's limits on purchases, increased inventory and tightened credit. With rising inventory and debt levels, the asset/debt ratio of real estate agents is expected to reach 70%.
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