Kaboom: Existing Home Prices Collapse 20pc in Tongzhou
Caijing: 北京二手房价大面积下跌 部分区域跌幅超20%
It is noteworthy that, according to 我爱我家 (5i5j) market research institute statistics, in May 2017, Beijing existing home transaction prices fell 2.4% mtm. Of the 12 districts with deals, the average transaction price for eight districts is falling, with only four districts rising. The largest decline is Tongzhou District, Yizhuang Development Zone, the decline is more than 20%.
One reason for the dip is likely the policies against converted apartments, which were popular in Tongzhou. Another is the collapse in credit:
It is noteworthy that the existing housing market leverage is also changing, due to the policy of high – pressure restrictions, the proportion of full purchase is increasing.
According to 5i5j, the proportion of all cash purchases rose from 29.15 percent in March to 43.23 percent in May. Commercial loans fell from 51.38 to 34.42 percent over the same period.