September 14 (CapitalVue) -- Home transactions in first-tier cities in China fell significantly in early September, reports Shanghai Securities News.

According to Beijing Centaline Property, new home transactions in the first 12-day period in September in Beijing averaged just 135 units, the lowest level since February. On the day of the Mid-Autumn Festival, there were only 64 transactions of new homes.

Of the 8 developments which launched new units for sale since August, four developments reduced their prices significantly.

New home transactions in Shenzhen fell 28.6% week-on-week to 417 units last week, with the average transaction price of existing homes dropping 4.05% to RMB 21,772.85 per square meter. The only district to have recorded an increase in the average transaction price was Nanshan district.

According to Century 21 China Real Estate, new home transactions in Shanghai in the first 12 days of September fell 4% month-on-month to 1,648 units.

New home transactions in Shanghai last week decreased 29.16% week-on-week to 911 units. The average transaction price rose 12.5% week-on-week to RMB 24,900 per square meter last week due mainly to transactions of high-end developments costing more than RMB 60,000 per square meter.

The Shanghai real estate market is actually facing a situation of a lack of market demand while price quotes remained high, according to the report.

According to the reporter, a number of developers in Beijing, Hangzhou, and Changchun had slashed the selling prices of their developments by 40-50% recently. Buyers at some of these developments had cancelled their purchases due to the price cuts.

Li Wenjie, general manager of Beijing Centaline, said cities experiencing price cuts are those which executed property purchase restrictions earlier and which have existing property bubbles.

Sharea of Poly Real Estate Group Co. Ltd. (600048) rose 1.49% to end at RMB 10.88 on Wednesday.

Source:CapitalVue