China’s June home sales likely to rise sharply: private forecaster

CHINA’S new home sales are likely to accelerate in June, according to a leading transaction data provider, signalling improving sentiment in the property market following a slew of stimulus measures this year and slightly easier Covid-19 curbs.

New home sales by floor area in 100 cities are expected to jump 21 per cent month-on-month to 25.06 million square meters, widening from a 14 per cent rise in May, E-house China Research and Development Institution forecast in a report published late on Tuesday.

Authorities are scrambling to boost weak demand after a fall in sales in recent months, depressed by tight Covid-19 curbs and a slowdown in the world’s second-biggest economy. 

Over 200 cities have taken steps to prop up the ailing property market, including subsidies, smaller down payments, cuts in mortgage rates and better terms for households with more than one child.

Among the 100 cities surveyed by E-House, 26 major cities, including Shanghai, are likely to see 13.14 million square metres in sales, up 13 per cent from a month earlier. 

Sales in Shanghai, which was locked down for two months until the end of May, will leap 684 per cent on month, leading the surge in transactions. 

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Sales in 74 tier-three and tier-four cities are expected to rise 31 per cent to 11.92 million square metres. REUTERS