Ninbo Housing Market Annual Sales Breaking Record

Looking back to the past year, if there were a nomination for the Top Ten Phenomena in Ningbo , then the hot housing market surely would have qualified. According to statistics released by Ningbo Property Transaction Center (NPTC), in 2016 Ningbo city (excluding Fenghua District) has seen the transaction of 58,087 commercial houses and 64,461 second-hand houses, breaking the past record. A record high in both price and sales Soaring price and transactions are the most obvious trends of the past year. The annual sales of new houses in Ningbo reached a record 58,087 in total, up 38.2% over the year before. Then there's the price. Even without specific data, many citizens could feel keenly the change back in 2013 or 2014, residential quarters with an average price of Rmb20,000 per square meter are a handful, even in the higher quality areas of the city. Fast-forward to now and few downtown apartments are priced under Rmb20,000 per square meter. Actually, quite a few have challenged the 30,000 threshold. Plus the still active house buyers driven by a desire to improve life, instant sellout once again makes headlines. So how much indeed has the price increased? The NPTC has stopped publishing the average price of the city's monthly property transactions at some point. According to a statistics institution, the yearly figure is Rmb14,031 per square meter, up 4.8% year-on-year. Subsidies spurs sales Notably, sales of second-hand apartments outstripped that of new apartments with a year-on-year increase of 79.4%. Apparently it should be attributed to the release of a raft of favorable policies like tax cut and subsidized housing. What's more, since the offer to subsidize half of the deed tax will expire at the end of 2016, buyers all hurried to catch the last train . The number of property transactions both totaled 6,000 in October and November. And the figure for December was even more staggering, reaching 10,035, unprecedented for sales of a single month. Besides, the demolition of several shanty towns has also boosted the second-hand housing market. New deep-pocket players join the game When the bread sells fast, the flavor is quick to ride the wave. In the past year alone, Ningbo has welcomed the arrival of 10 real estate giants, including SUNAC, DoThink, CIFI, China Railway Contruction, Beijing North Star, China National Real Estate Development, CCCG Real Estate, Sichuan New Hope, Zhongliang, etc. Among them, more than half are state-backed. In contrast, local real estate developers seem to bide their time. Only RongAn continued active participation. What's worth mentioning is that establishing a conspicuous beachhead through the housing market is not the only way for the big players to penetrate into Ningbo. Actually, several unknown enterprises have already gained ground by directly making capital investment. For example, in November, Road King Infrastructure took over the Aolisai Plaza Project stranded for two years at the price of Rmb960 million. And in its Dec. 30th announcement, Aoyuan Property declared its 710 million yuan acquisition of Ningbo Haituo, Ningbo Tianpai and Ningbo Disai, involving the full transfer of four property development projects. Notably, Ningbo has seen a number of competitive enterprises that undertake development projects through takeovers or corporate cooperation in pursuit of asset-light strategy.

LINK:	http://en.nbwh.gov.cn/art/2017/1/20/art_1325_92421.html...
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