Housing in China becomes more expensive for the first time over the last year on annualized basis, showing the possibility to stabilize housing market, which may accelerate the paces of economic recovery. Experts believe that opportunity of a sharp decline in housing prices is unlikely, as there is a huge number of unsold construction projects in the market now, which are in major cities across the country. This behavior of prices is putting pressure on construction companies that decrease rates of construction, to reduce the risk of assets losses.
Li Yuan, president of consulting company in Shanghai, said that there are still many market participants perceive the current situation with pessimism. "Building of objects decreases, and the results from actions of the state are over," - he adds. The average values of prices on the market rose by 0.1% last month against the level of last year, according to Reuters agency on Wednesday. In September 2015, we observed a decrease to 0.9%, but due to the current rise, statistics show continuation of increase in prices since August 2014.
Despite the gradual "recovery" of segment, which includes the 15% of GDP - this is a positive news for the Chinese economy. Now it is experiencing record slow growth for the past 25 years. Shares of real estate segment on the Shanghai Stock Exchange increased by more than 4%. Greenland Holdings and Poly Real Estate securities rose approximately by 10%. Shenzhen leads the list of the largest cities in China, which show the highest growth rates. Over the last year in Shenzhen housing increased in price by 39.9%.