China’s Home Buyers on “Revenge Spending Binge” Post Pandemic. Will Toronto follow?
Housing buyers returned on mass to local markets as China eased Covid-19 lock down restrictions. The Hong Kong daily, South China Morning Post, described residential real estate activity as a “revenge spending binge”. Concluding that pandemic lock downs rather than dampening demand had only deferred it.
Post pandemic sales up in China since lock down restrictions lifted
In major cities across China residential property purchases rose 37 per cent in the week ending April 20.
“Property sales have increased since last month, as businesses reopen and normal activities are resumed. We believe the recent high transaction volume is mainly driven by the release of pent-up demand from the mass market since the first quarter,” said Celine Yang, Assistant Vice-President-Analyst with Moody’s Investors Service’s Corporate Finance Group.
In the seven-day period leading up to April 20, mainland China’s larger cities recorded a 37 per cent weekly increase in home sales.
In Shenzhen, about 152,000 square metres of homes were sold in the week ending April 26. Which is an increase of 36 per cent over the previous week and 6 per cent higher than the same period in 2019.
One luxury project in Shenzhen on April 5 recorded fifty-four units, worth 2.3 billion yuan, sold in half a day. While 92 units in Guangzhou were sold online in 15 seconds on March 31.
I know these are uncertain times for many right now. With over 30 years of experience selling real estate in Toronto, I’ve seen it all.
Well, almost.
Up until 2020 there had been no pandemics on my resume. However, we are adapting quickly to the new situation and have learned a lot over the last 2 months. If you have any questions or concerns about the real estate market in your neighbourhood, please email or call me. I am happy to help you and guide you through these unusual times.
Reference: Chinese homebuyers go on ‘revenge spending’ binge as cities emerge from coronavirus lockdowns.
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