China post Coronavirus: real estate recovery
According to reports from the main national media, it now seems that China has fully overcome the Coronavirus emergency. As always, the real estate sector represents a clear representation of the country's well-being. And never as this time, this sentence could not have been more appropriate. Today, in fact, we have decided to bring you the main dynamics relating to the Chinese real estate, post-crisis from Coronavirus. So let's try to understand them thoroughly.
The figures relating to sales of houses registered in China in the last few weeks are clear! A real recovery after the collapse, which bodes well. The sales in fact, during this serious emergency, had fallen by 99.7%. These are the figures for the period from the first day in which the pandemic state in China was declared, until the last day in which the end of this sad page of history was declared.
Another element that makes us understand how closely real estate is connected to the remaining economic dynamics of a given country is the following. The reopening of commercial activities, inaugurated after a long period of extreme restrictions, has automatically increased real estate sales.
Looking at the main thirty Chinese markets, it is possible to notice how, already in the first weeks of March, real estate transactions (purchase and sale contracts) recorded an increase of almost nine percentage points, compared to the previous month.
Although the situation is still positive, it must be compared with the rest of the competing markets. In general, what awaits the various nations, in terms of real estate, does not seem to give particular hope. The economists in the sector are predicting a strong jolt. A real alteration of difficult to manage market balances.
It therefore remains to be seen whether the Chinese situation is to be considered totally positive or only partially. Is this recovery only the result of a momentary rebirth after a profound crisis, or is it actually worthy of mention in comparison with other States?
In fact, the other markets have seen the collapse of prices, similarly to the Chinese ones. But the problem for European real estate is given by the absence of real interest from investors in approaching the real estate market. Diametrically opposite situation therefore, with respect to the Asian one. The European problem, and therefore the Chinese strength, is not so much the absence of good investment opportunities. On the contrary, the problem lies precisely in the buyer's psychology. In Europe, as well as in America, where the emergency situation is still initial, investing in the real estate market does not seem to be of primary necessity.
In a nation, however, where the desire to recover a period of critical stalemate seems common, it is obvious to note a decidedly more proactive attitude.
How will the situation evolve? According to the main statistical surveys, the Chinese recovery seems to have a downhill road ahead!
The figures relating to sales of houses registered in China in the last few weeks are clear! A real recovery after the collapse, which bodes well. The sales in fact, during this serious emergency, had fallen by 99.7%. These are the figures for the period from the first day in which the pandemic state in China was declared, until the last day in which the end of this sad page of history was declared.
Another element that makes us understand how closely real estate is connected to the remaining economic dynamics of a given country is the following. The reopening of commercial activities, inaugurated after a long period of extreme restrictions, has automatically increased real estate sales.
Looking at the main thirty Chinese markets, it is possible to notice how, already in the first weeks of March, real estate transactions (purchase and sale contracts) recorded an increase of almost nine percentage points, compared to the previous month.
Although the situation is still positive, it must be compared with the rest of the competing markets. In general, what awaits the various nations, in terms of real estate, does not seem to give particular hope. The economists in the sector are predicting a strong jolt. A real alteration of difficult to manage market balances.
It therefore remains to be seen whether the Chinese situation is to be considered totally positive or only partially. Is this recovery only the result of a momentary rebirth after a profound crisis, or is it actually worthy of mention in comparison with other States?
In fact, the other markets have seen the collapse of prices, similarly to the Chinese ones. But the problem for European real estate is given by the absence of real interest from investors in approaching the real estate market. Diametrically opposite situation therefore, with respect to the Asian one. The European problem, and therefore the Chinese strength, is not so much the absence of good investment opportunities. On the contrary, the problem lies precisely in the buyer's psychology. In Europe, as well as in America, where the emergency situation is still initial, investing in the real estate market does not seem to be of primary necessity.
In a nation, however, where the desire to recover a period of critical stalemate seems common, it is obvious to note a decidedly more proactive attitude.
How will the situation evolve? According to the main statistical surveys, the Chinese recovery seems to have a downhill road ahead!
