Chinese demand for new houses in August increases by 6.1 percent month-on-month: report

(ECNS) -- A new report released by online real estate data providers shows that the overall demand for new houses in 65 key cities in China increased by 6.1 percent in August compared to the previous month.

The report was released by online platforms 58.com and Anjuke on Tuesday.

It pointed out that in August, the demand for new homes witnessed a month-on-month increase of 8.0 percent in first-tier cities, 5.9 percent in second-tier cities, and 5.2 percent in third and fourth-tier cities.

Specifically, South China’s Shenzhen saw the highest month-on-month increase among first-tier cities, with a surge of 11.8 percent. Beijing's demand for new houses increased by 8.6 percent, Shanghai's increased by 5.3 percent, and Guangzhou, by 8.8 percent.

Looking at the Real Estate Agent Confidence Index, which is another indicator reflecting market expectations, the index for August 2023 was 95.0, showing a 0.5 percent month-on-month increase.

The report pointed out that in August, 41.6 percent of real estate agents believed that the transaction volume of second-hand homes would remain largely unchanged, while 35.1 percent expected an increase in demand for second-hand homes in September.

Zhang Bo, director of the 58 Anjuke Research Institute, stated that recent real estate-related policies are expected to benefit market resurgence in first-tier cities and stimulate more cities across the country to emerge from their sluggish housing market conditions.