May 24, 2012
(SCMP)
Property sale volumes in major Mainland cities began to recover in recent weeks after slowing in April. According to a securities firm, weekly sales figures for 7-12 May indicate that tier-one cites recorded average sales volume growth of 38.5% week on week, with Shenzhen and Beijing witnessing a strong recovery from previous weeks.
Meanwhile, tier-two and three cities saw average growth of 34%, with only Fuzhou posting a decline. Dalian and Chengdu recorded the strongest sales growth of 74.8% and 81.2% week on week, respectively, among all major cities.
The improvement was spurred by a relaxation of liquidity and pent-up demand. An influx of large numbers of rural immigrants and graduates from other cities to bigger cities was generating high demand for housing, especially for first-home purchases and property upgrades.
