Housing prices in Beijing declined in March

Data from www.bjfdc.gov.cn shows that turnover in the commercial housing market in Beijing fell in March 2011. Speculative investment demand was effectively squeezed out of the market, and the average housing transaction price in March showed a decline for the first time in 19 months compared with the same period of 2010, and housing prices of hotspots are stable with a slight decline as well.
The average daily sales volume of new commercial housing in Beijing stood at 133 in March, a decline of nearly 51 percent compared with the same period of 2010 and a decline of nearly 42 percent compared with February 2011.
The main reason for the decline is that the speculative investment demand was effectively squeezed out of the market. Currently, nearly 90 percent of market transactions are for people who plan to occupy the housing. The proportion of second-house transactions, which stood at nearly 16 percent before the new policy was implemented, fell to 11 percent. The proportion of homes bought by non-permanent residents in Beijing fell from more than 40 percent to 8 percent.
The average transaction price of new commercial houses in Beijing stood at 19,679 yuan per square meter in March, a decline of nearly 27 percent compared with February 2011 and a decline of nearly 11 percent compared with the same period of 2010. This is the first time that the price of new commercial housing in Beijing has shown a decline since September 2010.
By People's Daily Online
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