February saw a 28.6% year-on-year drop in home sales of 21 major Chinese cities, reports Caixin Global, with analysts pointing to sluggish demand during the Spring Festival period.
According to data released on Monday by property research firm China Index Academy, sales in so called ‘first-tier’ cities, such as Shanghai, fell more sharply than in smaller, ‘second-tier’ cities, with 54.7% drop than January. Second-tier city home sales fell 30.7% month-on-month.
Talking to Caixin, Hu Jingjun of B.A. Consulting and realty company 5i5j, listed the seven-day break for Chinese New Year as dampening home sales this month. “During the Spring Festival, the property market enters the off-season, so demand was weak,” Hu said.