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Q1 property sales rebound in first-tier cities

Updated: 2012-03-29 14:21

(Xinhua)

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BEIJING -- Property sales rebounded in China's first-tier cities in the first quarter, signaling a return for the sector after slackened sales last year due to government curbing policies.

The trading volume of new homes in Beijing rose 20 percent month-on-month to more than 5,500 units in February, official data showed.

The city's property market further recovered in March, with home sales jumping to 2,732 units during the first half of the month.

"The recent rebound in property turnover is a result of falling housing prices and lower interest rates on first-time home loans," said Hu Jinghui, a senior real estate expert and vice-president of 5i5j Real Estate.

New housing prices have hovered around 18,000 yuan ($2,857) per square meter for three consecutive months in Beijing.

In the eastern city of Shanghai, sales of low-to mid-cost housing surged last month, with the amount of floor space sold skyrocketing nearly 90 percent from the previous month to reach 403,200 square meters.

Shanghai's new home prices fell to 19,831 yuan per square meter in February, making the first time for prices to sink below 20,000 yuan since August 2010.

The government has introduced a slew of measures to curb runaway property prices since 2011, including restrictions on second-home purchases, higher down payment requirements and the introduction of property taxes.

The government vowed to keep up the tightening measures this year, as housing prices remain at high levels.

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