Buyer panic drives up second-hand property market

November is usually a chilly month for the second-hand property market. But it's a different picture this year. Fears of an end to easy loans and even easier policies are pushing nervous buyers into the market. Many who would have preferred to wait are now making the leap and signing their contracts.

One home buyer said "I heard that banks' loan policies are tightening and the preferential policy will stop at the end of the year. So I have to settle this matter quickly."

One home buyer said "I planned to buy a house next year. But the preferential policy will probably end very soon. So I am busy signing the contract."

November is usually considered a low month for sales in the second-hand property market. But this year, trade volumes have grown dramatically. The latest figures show transaction volumes for second-hand properties in Beijing reaching more than 13-thousand units in the first half of November, up 74.5 percent month-on-month.

Hu Jinghui, Deputy GM of 5i5j Property Agency said "The transaction volume in the first half of November increased more than 100 percent year on year, hitting a historical high. If the growth rate continues in the second half of the month, November will see the highest number of transactions for second-hand properties so far this year."

Insiders believe this boom in transactions is largely due to buyer panic. Most are worried that prices will continue to rise next year. They are also concerned that preferential loan policies will be removed by the end of the year.