BEIJING, June 30 (Bernama) — Sales of new homes in Beijing plummeted by 48.8 per cent year-on-year as at June 26, 2014, hitting the lowest level since 2005.
A total of 22,782 units of new homes covering an area of 2.75 million square metres (sq m) had been sold from January 1 to June 26, down from 44,460 units sold in the same period last year, the China Daily reported.
However, average prices of new homes stood at 26,687 yuan (US$4,300) per sq m in the same period, up 18.8 per cent from a year earlier.
The shrinking sales volume has driven Beijing’s housing inventory, including properties under construction, to a new 18-month high, the report said.
Property construction in the capital of China has increased 70 per cent year-on-year in the first half of this year.
Despite the bad reception for new homes, high-end housing supply is expected to surge in the following months due to the easing of restrictions from the Beijing Municipal Commission of Housing and Urban-Rural Development.
“Policy easing on high-end housing purchases will have limited impact to stoke the cooling housing market, especially with a tightening monetary policy,” Ren Qixin, deputy general manager of Yahao Real Estate Service Corp, was quoted as