Housing inventory build-up to gradually ease in major cities: report

BEIJING - The gloomy property market across China since the coronavirus outbreak has led to a build-up in unsold inventory, but analysts predict the situation will gradually ease in major cities as transactions are likely to rebound following basic containment of the epidemic.

Data from the property research institution CRIC showed housing inventory in 50 monitored cities stood at 304.32 million square meters by the end of March, up 11 percent from the volume seen in the same period last year, Economic Information Daily reported.

Inventory in 33 cities would take more than 18 months to digest, while seven cities including Beijing and Dalian saw a build-up of more than 40 months, CRIC noted.

To mitigate the virus impacts, some local governments in China have rolled up supportive policies including credit support, financing cost cuts and deferred payment of land transfer fees to help developers tide over.

As the epidemic wanes, pent-up home-buying demand will gradually be unleashed, according to CRIC, which predicted a retreat of inventory in first- and second-tier cities in the second quarter.

But in less developed regions, housing inventory may continue to pile up, the institute added.