Beijing's housing sector headed toward stability in H2

The residential market in Beijing will stabilize in the second half of 2021, with over-heated performance not likely to happen under the existing government policies, according to industry institutions and experts.

Savills, an international real estate service provider, said the supply of new residential housing in the second quarter increased by 1.31 million square meters, down 13 percent from the previous quarter. Meanwhile, the floor space of first-hand residential projects rose by 6.4 percent to 2.06 million square meters.

Vincent Li, associate director of North China at Savills, said the government measures have successfully curbed the home price growth and Beijing's property price remains stable compared with its peers.

Statistics from JLL, also an international real estate consultancy company, show that sales volumes for the high-end residential market continued to swell in Beijing, supported by the large amount of new supply.

A total of 839 luxury apartment units were sold in the second quarter, up 79 percent quarter-on-quarter. And developers accelerated new launches in the high-end market in light of the positive buying sentiment. For instance, Cloud Mansion, a luxury villa project co-developed by Beijing-based Tianheng Group and Hong Kong-listed Henderson Land, just entered the market, betting on the recent positive buying sentiment.

However, even as buying momentum gained further traction, high-end prices remained largely flat as many developers continued to offer promotions to push sales. Luxury apartment primary prices rose only nominally by 0.1 percent on a quarterly basis.

Wang Hao contributed to this story