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December 26, 2024
PI Global Investments
Property

China stimulus lifts property sentiment in higher-tier cities; some question durability


On a quiet Wednesday afternoon in Jiuxianqiao, a neighbourhood just outside Beijing’s Fourth Ring Road, the streets were calm, with barely a car in sight. Inside a kerbside sales office, however, staff bustled about, serving desserts and drinks as clients streamed in, eager to place their bids on Oriental Courtyard, a new luxury apartment complex that is set to launch later this month.

The residential project, led by state-owned China State Construction Engineering Corporation, includes eight buildings with a total of 380 units ranging from 143 to 249 square metres, according to documents seen by the Post. The units are priced at an average of 125,000 yuan (US$17,687) per square metre – nearly three times the city’s average of 48,594 yuan.
Oriental Courtyard obtained its advanced sales permit – which allows developers to preregister interested buyers ahead of official project launches – on September 28, just days after Beijing unveiled its stimulus package aimed at reviving the property market. None of the 380 units are expected to be completed until August 2027, according to Zhou Yi, a sales representative at the office.

“Over 400 groups of clients have already placed a bid, which means we’re oversubscribed. Some paid deposits of as much as 200,000 yuan,” Zhou told the Post. The deposit will be refunded to the buyer’s account within 30 days if they are unable to purchase a home, he added.

One of the main reasons that Oriental Courtyard is appealing is that a new project hasn’t launched in this prime area in a long time, making it a “rare and valuable” core asset, according to Zhou.

“But the more important thing is that people are regaining confidence after the country’s ‘missile-like’ stimulus package in September,” he noted.



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