The Real Deal New York

Chinese housing market continues to cool: Report

Nevertheless, developers are seeing massive gains

April 19, 2015 02:00PM

The Shanghai skyline

The Shanghai skyline

A new 70-city survey shows that the Chinese housing market is cooling. But that doesn’t have developers worried – they’re still seeing double-digit gains.

The National Bureau of Statistics said on April 15 that new home prices fell in March in 50 cities, according to Forbes. The survey showed a general decline across China from February sales prices.

That being said, prices in Beijing and Shenzhen increased ever so slightly, up 0.3 percent and 0.5 percent, respectively.

On the other hand, those declines sent new home sales soaring. Volume increased 65.9 percent to 270,000 units in March from the previous month, according to the NBS data cited by Forbes.

Meanwhile, investors pumped roughly $258 billion into real estate in the first three months of the year – a 9.5 percent increase year-over-year. And that’s making developers happy, with one of China’s biggest home builders, Greenland Hong Kong, up a whopping 115 percent in 2015. Even smaller firms like Evergrande Real Estate Group are up – Evergrande is up 50.48 percent. [Forbes]Christopher Cameron