Surge in floor space snapped up over holidays

Survey reveals dramatic rises in major cities, led by Guiyang with 2,675%

China's major cities saw a dramatic surge in the amount of residential floor space sold during the Lunar New Year holiday than a year earlier, reflecting the robust rally in the housing market in recent months, experts said.

Of the 27 main cities tracked by China Index Academy, the research institute under the country's largest real estate website SouFun Holding Ltd, 21 cities saw more residential property floor space sold during the week-long holiday that began Feb 9.

Guiyang, Guizhou province, led all cities with an astonishing 2,675 percent year-on-year growth during the holiday.

Wenzhou, Zhejiang province, saw a 1,433 percent growth in gross floor-area transactions.

Chengdu, capital of Sichuan province, saw its residential property transactions surge 227.78 percent from a year ago, topping the 10 major cities surveyed.

Six cities saw fewer property transactions during the holiday, with Wuhan, of Hubei province, slumping 93.56 percent, and Shenzhen, of Guangdong province, sliding 92.86 percent, leading the decline.

Hu Jinghui, vice-president of 5i5j Real Estate Service Co in Beijing, said home buyers tend to clinch deals before Lunar New Year on expectations that property prices will continue to rise.

He said it is less likely for the government to announce stricter policies in addition to current purchase restriction and mortgage barriers.

"The property policy will become more market-oriented, and will balance supply and demand through making adjustments in taxation, land supply and the provision of government subsidized houses, etc," Hu said.

Separately, figures from Shanghai Centaline Property Consultants showed newly built residential trading in the city rose 165.35 percent during the holiday period compared with that of last year. Property price traded at an average of 24,056 yuan ($3,854) per square meter, up 40.69 percent year-on-year.

Considering that the Lunar New Year is a traditional low season for property trading, this year's trading is a result of increased transactions and land purchasing ahead of the holiday, said Ke Xiaojuan, an analyst from Shanghai Centaline Property Consultants.

Ke said the latest transaction fever is evidence that the property market is starting to heat up, and she predicted the property market will pick up further after the annual sessions of the National People's Congress and Chinese People's Political Consultative Conference in March.

"The two sessions will become an important barometer for the property market," Guo Yi, marketing director of Yahao Real Estate Selling and Consulting Solution Agency, was quoted as saying by the Securities Times newspaper on Monday.

Guo said the new property macro control policy will become clear after the two sessions, which will lead the direction of the property market in 2013.

Against the backdrop of purchase restrictions, the core home buyers are still first-home buyers and those intending to improve their living situations.