Generally speaking, the first-tier cities and some second-tier cities, especially in the coastal regions, are highly soughtafter locations and have seen prices rise significantly over the last decade. In fact, local governments have introduced a number of restrictions to keep pricing in check and limit speculative behaviours. In addition…
Generally speaking, the first-tier cities and some second-tier cities, especially in the coastal regions, are highly soughtafter locations and have seen prices rise significantly over the last decade. In fact, local governments have introduced a number of restrictions to keep pricing in check and limit speculative behaviours
In addition to demand-side restrictions, the government has started encouraging the development of residential leasing stock over the last three years. Yields on individual units typically stand at around 1.0-2.0%. Homeownership levels are roughly 70-80% in big cities. Given their maturity, price growth has been more limited than some smaller cities, but also much more stable. The market has also shifted towards the second-hand market, as suitable land plots for development are scarce and the pace of development slows. Some cities also have population controls that limit demand from continued urbanisation.
