As of the end of August this year, the total inventory of new commercial residential housing in 100 major cities in China increased by 0.8 percent month on month, to 484.38 million square meters, while up 7.5 percent year on year, as announced by CRIC, a real estate research institute of E-House, a Shanghai-based real estate transaction service provider.
Housing supply in 100 major cities in China amounted to 57.48 million square meters, while the transaction volume totaled 53.41 million square meters, showing the oversupply situation in the market.
As of the end of August this year, the total inventory of new commercial residential housing in the first-tier, second-tier and third-tier plus fourth-tier cities among the 100 major cities in China respectively reached 29.58 million square meters, 249.93 million square meters and 204.87 million square meters, up 11.7 percent, 11.8 percent and 2.1 percent year on year.
Market analysts said that real estate enterprises have increased investments in second-tier cities over the past few years, resulting in rising inventory levels. In the traditional peak season of September and October, they noted, rising inventory is not a purely negative signal, but also means there is sufficient supply in the real estate market, which will push up transaction volumes.