Based on the lower cost of borrowing, the residential property market in Tianjin saw the average sales price of newly-launched apartments breaking the RMB 10,000 per sq m, reaching RMB 10,259 per sq m. This rise of RMB 300 per sq m reflected an estimated 3% increment over the average sales price of RMB 9,964 per sq m for the month of May 2012.
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In terms of total number of transactions, there were 8,483 units sold in June 2012, totalling an estimated 89,800 sq m. This represented an increase of 18.5% month-on-month.
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In terms of the transaction volume breakdown, Tianjin’s six core districts (Heping, Hexi, Hongqiao, Nankai, Hebei and Hedong), four suburban districts (Wuqing, Xiqing, Jinnan and Dongli) and Binhai New District registered increments of 34.2%, 28.4% and 35%, respectively. On the flip side, outlying counties (Ninghe and Ji) and districts (Baodi and Jinghai) experienced a drop in transaction volume by 10.3% for the same period of comparison.
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Price-wise, the six core districts’ average sales price was RMB 16, 125 per sq m; suburban districts reached RMB 9,271 per sq m; Binhai New District was RMB 8,942 per sq m and outlying counties and districts registered RMB 6,742 per sq m.Â
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Two main areas saw the highest jump in prices for new apartments – TEDA (Tianjin Economic Development Area) and Dagang area – by slightly more than 10% month-on-month. In TEDA, the average price rose by 16% to RMB 18,048 per sq m. This was due in part to Vanke’s Copper Crest project launch, which saw transaction prices averaging RMB 22,231 per sq m. In Dagang, the average price rose by 12% month-on-month to reach RMB 6,573 per sq m.
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The Table below shows some of the top-selling residential developments in the month of June 2012:Â
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Although the Central Government is striking a balance between stimulating a sluggish economy and contending with a small housing revival of sorts, Premier Wen Jia Bao is adamant that speculative investment must be curbed at all cost as runway prices would undermine the political and social fabric of the Chinese society. It is against this backdrop that the residential property market in Tianjin is likely to stay on the conservative side as it seeks to address housing needs of first-time buyers and the upgraders’ market.
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