China's major cities see surges in housing sales following new policies

China's major cities have seen significant recovery in housing transactions following the adoption of new policies to lower costs for homebuyers, ease the financial pressure of real estate companies and stabilize the housing market.

The four first-tier cities -- Beijing, Shanghai, Guangzhou and Shenzhen -- have all announced the cancellation of standards for ordinary residences and non-ordinary residences earlier this week.

Due to the distinction between ordinary residences and non-ordinary residences, in the past, home buyers would have differences in value-added tax, deed tax, loan interest rates, among other during transactions of larger houses.

After canceling this classification standard, the reduction of tax burden becomes a major highlight.

This marks another round of policies implemented after a meeting of the Political Bureau of Communist Party of China (CPC) Central Committee in late September stressed the need to respond to public concerns by adjusting policies restricting housing purchases, lowering interest rates on existing housing loans, and promptly improving policies related to land, fiscal and tax matters, and finance to promote the establishment of a new model for real estate development.

The latest policies have greatly boosted confidence and sales in the housing markets nationwide.

"So far in November, we have averaged at around 20 deals a day. The figure was 15 deals in September," said Guo Zichen, manager of a real estate service center in Beijing.

In Shanghai, some homebuyers looking for better housing have raised their budgets after the standards for ordinary residences and non-ordinary residences were canceled.

"In October, a client said his budget was around 5 or 6 million yuan (about 690,000 or 830,000 U.S. dollars). Now (the new policy helps him) save the money and he added it into his budget, and eventually he bought a home at the price of 8 million yuan (about 1.1 million U.S. dollars)," said Du Qiaojun, manager of a real estate agency office in Xuhui District of Shanghai.

In Shenzhen, south China's Guangdong Province, the number of new housing units sold daily reached 276 from November 1 to 17, a record high since December 2006.

"In general, the sales have increased significantly in the past one and a half months. Specifically, the sales of new homes have surged by 366 percent month on month," said Zhang Qingping, vice president for marketing of a real estate agency in Shenzhen.

In Guangzhou, the sales of new homes doubled month on month to 10,418 in October, covering a total area of 1.1147 million square meters, according to statistics.

"In November, the number of transactions in Guangzhou's housing market remains at a high level, further consolidating the trend of steady recovery. From November 1 to 18, new homes with a total area of 744,300 square meters were sold, an increase of 25.6 percent month on month. The daily average sales of new homes amount to 41,400 square meters, the highest in 20 months," said Song Jiaping, deputy director of the real estate management office of the Guangzhou Municipal Housing and Urban-Rural Development Bureau.

China's major cities see surges in housing sales following new policies

China's major cities see surges in housing sales following new policies

The 2024 Los Angeles Auto Show, one of the largest car events in the United States, is in full swing, serving as a platform for major automakers to unveil their latest models and concept cars. This year's highlight is the industry's transition to electric vehicles (EVs).

Unveiling a new electric vehicle at the Los Angeles Auto Show is no longer a novelty. Manufacturers are now stepping up by introducing electric SUVs and trucks, reflecting the growing demand for versatile EV options.

"What we're understanding is that some of the biggest purchase decisions are made on range and charging. So, everybody wants to have a long-range battery. So, anything over 300 miles, it seems to be the sweet spot. That is when you start getting people to consider switching from a gas-powered car to an electric car," said Shad Balch, Director of Communications at Chevrolet.

Electric vehicles are the buzzword at this year's show, with automakers showcasing new models that promise better performance, longer ranges, and faster charging capabilities.

However, some experts have raised concerns about market saturation. In developed markets like California, many early adopters have already made the switch to EVs.

Despite the higher costs, government incentives continue to play a crucial role in making EVs more accessible.

"EVs are here to stay. They are the wave of the future. Electric vehicles are better for emissions. And the government is mandating that all manufacturers have to produce EVs," said Claudia Anderson, Product Specialist at Subaru.

California is leading the charge with a mandate requiring all new vehicles sold in the state to be zero-emission by 2035. This corresponds to the growing environmental consciousness among consumers, which experts believe is driving the increasing demand for EVs.

"I'm from California. And remember, growing up when we had "spare the air days" - that the air was too dirty to go play outside. So, California's made big strides in leading the way with environmental policy, and the vehicles are a nice complement to help achieve that solution," said Balch.

According to "Statista Market Insights," the U.S. EV market is projected to grow at an average annual rate of over 10 percent, with total unit sales expected to reach 2.3 million vehicles by 2029.

Los Angeles Auto Show 2024 highlights surge in EVs