【Global Property Guide】China's house price boom over in the 1st tier cities

During the global crisis China´s housing market slowed sharply. In November 2008 the government introduced a CNY4 trillion (US$585 billion) post-financial crisis stimulus package. Developers were now easily able obtain loans, with lower capital requirements.

Buyers took advantage, with looser lending conditions and lower interest rates. The result? Existing house prices surged by 19.7% in Beijing during 2013 (16.77% inflation-adjusted), and rose by 12.85% in Shanghai (10.13% inflation-adjusted). In 2014, house prices in Beijing fell by 4.11% (-5.45% inflation-adjusted), but prices surged again by 21.01% (19.09% inflation-adjusted) in 2015 and 36.73% (34.06% inflation-adjusted) in 2016. In 2017, house prices started to cool down due to the tighter government measures implemented in late 2016.

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