The real estate market in mainland China is in a weak recovery, while housing prices in Chengdu are rising due to adversity. In February, the price of new houses in Chengdu increased by 8.6% year-on-year, and the price of second-hand houses increased by 9.2% year-on-year. The growth rate surpassed that of other cities. This is related to factors such as economic growth, population surge, and housing market regulation policies.
The National Bureau of Statistics of Mainland China recently announced the performance of housing prices in 70 large and medium-sized cities. In February, the price of new houses in Chengdu rose by 8.6% compared with the same period last year, and the price of second-hand houses increased by 9.2% compared with the same period last year.
The Securities Times reported on the 19th that the overall housing market in mainland China is in a weak recovery, and housing prices in Chengdu are strengthening amid adversity, which can be seen from several aspects such as economic growth, population surge, and housing market regulation policies.
Chengdu’s gross domestic product (GDP) in 2022 will exceed RMB 2 trillion (approximately NT$8.9 trillion), and the per capita disposable income of Chengdu residents in 2022 will be 47,948 yuan, which is 10,798 yuan higher than the national per capita disposable income.
The number of listed companies can also explain the local economy and the number of rich people. According to the data, there are currently 116 listed companies in Chengdu in the A-share market, ranking 8th in the country; the total market value is 1.39 trillion yuan, ranking 9th in the country .
Last year, Chengdu had 15 A-share IPO listings, second only to Beijing, Shanghai, Shenzhen, and Suzhou, and tied for fifth in the country with Guangzhou and Hangzhou. In 2021, Chengdu will have a total of 14 IPOs listed on the A-share market, and the number of IPOs will rank seventh in the country.
The population of Chengdu has increased by 7.12 million in the past 10 years, ranking first in the country. Statistics from the Sichuan Provincial Bureau of Statistics show that by the end of 2021, Chengdu’s permanent population will be 21.192 million, making it the fourth megacity in China with a permanent population of more than 20 million; nearly half of Chengdu’s permanent population is young people aged 14 to 45.
In addition to the continuous record high housing prices in Chengdu, there are also signs of an explosion in transaction volume. According to data from the Housing and Urban-Rural Development Bureau of Chengdu, nearly 19,100 ancient houses were sold in Chengdu in February, a year-on-year increase of 160.43%, setting a record high; the transaction volume far exceeded that of Beijing, Guangzhou and Shenzhen.
The report mentioned that behind the rise in transaction volume and prices, the relaxation of housing market regulation policies may be the main reason. Chengdu’s fine-tuning of the housing market loosening policies lasted almost throughout last year, including policies such as talent purchase, provident fund withdrawal, self-owned housing rental purchase qualifications, multi-child purchase qualifications, parents’ eligibility to settle down and purchase houses, and second-hand houses with mortgage transfers and other policies.