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China / Society

Two-child policy boosts school district housing market in Guangzhou

(Ecns.cn) Updated: 2015-12-01 17:04

China's adoption of a two-child policy has boosted the second-hand property market in Southern metropolis Guangzhou, local media reports.

Data from property consultancy Centaline Group showed that second-hand house transactions in November climbed by 62.2 percent over October.

The loosened birth policy has ignited parent demand for Xuequfang, literally school district houses, as the country's education authorities require that public schools enroll pupils from designated areas. Therein, 11.52 percent of sales concern such investment, with a 4.84-percent increase compared to a month earlier.

Chen Huamei, senior manager of a Centreline Group branch on Taojin North Road, said more parents are eager to buy property near key schools for children, propelling prices. For example, a two-bedroom apartment is now priced at 1.6 million yuan ($250,000), 10,000 yuan higher than one month ago, according to Chen.

Meanwhile, people are more intent on buying larger houses with three or four bedrooms, an analyst of major online real estate listing platform Anjuke said. Its data showed sales of houses priced between one to two million yuan lowered by 5.2 percent, while those priced between two to three million yuan increased by 5.8 percent

China's property market took a downturn in 2014 due to weak demand and a supply glut. The cooling has continued into 2015, with both sales and prices falling and investment slowing.

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