Edition: English | 中文简体 | 中文繁体 Монгол
Homepage > Biz Video

Housing market stagnates in lower-tier cities

Reporter: Guan Yang, Li Sien, Xue Miao 丨 CCTV.com

10-10-2016 16:35 BJT

China's property market is all over the map these days with soaring prices in some cities and stagnant growth in others. In lower tier cities where the economy lags, housing prices aren't going anywhere. Reporter Guan Yang has the story from Shenyang.

As the National Day holiday travel rush drew to an end, another rush began on the first working day for the housing registration center in Shenyang. Here it looks as if the decline in the property market has bottomed out, and consumer confidence is shifting back to housing. But appearances can be deceiving.

"I've bought a new house to live in. But it is to improve my living conditions, not to make an investment," said a Shenyang resident Wang Qifeng.

"I think people here buy properties only when they have the need, and it is not wise to invest in them," said a Shenyang resident Gao Ling.

"This year, housing prices in megacities like Beijing and Shanghai have risen at their fastest clip, thanks to red-hot demand reminiscent of the bull market in 2009. But in contrast, some 2nd-tier cities like Shenyang, the economic hub of northeastern China, are seeing a different story unfold," Guan Yang said.

The average housing price here is almost at the same level of Beijing 10 years ago, and it makes sense to draw a line from changes in property prices to economic growth.

Senior property analyst from Liaoning Mango real estate company, Li Fenglai, said, "The reason why we haven't seen the kind of surge in housing prices in Shenyang is because of its weak economic growth and the brain drain phenomenon of recent years. This has resulted in a high inventory of unsold apartments."

It's worth noting that even though the city's overall housing market is stagnating, properties in good school districts are in high demand just like elsewhere in the country. It shows people here may be willing to compromise on distance from work, or poorer property management, but not on their children's education.

Yang Peng, a real estate broker of Shenyang, said,"When there are good schools around, property prices go up. This is what's happened in this area. It doesn't matter how tight or loose purchasing controls are, the demand is always there."

Li Fenglai said, "We've seen during the past few days that certain measures have been rolled out to cool the property market in some lower-tier cities where the housing prices have skyrocketed. But such a rolling out is unlikely to happen here any time soon."

So how soon can the city absorb its oversupply of housing? The answer lies within an economic boom expected.

Follow us on

  • Please scan the QR Code to follow us on Instagram

  • Please scan the QR Code to follow us on Wechat