Affected by the drop in land sales, total investment transaction volume for Q2 2014 dropped by 47.7% q-o-q to be recorded at US$29.6bn. Nonetheless, calculated on a year-to-year (y-o-y) basis, investment volume was still up by 4.1%.
Within the 16 cities covered in the survey, land deals plunged significantly this quarter with total transaction volume down by 50.8% q-o-q to be recorded at US$26.4bn. The continued imposition of HPRs combined with the tightening of credit acted collectively to reduce the volume of residential sales. This, in turn had the effect of reducing developers’ interest in acquiring development sites. As a further consequence of this slow-down in residential sales, developers were faced with rising inventories of unsold stock. This, in turn, compelled some of them to cut prices to clear unsold stock during the quarter, causing buyer sentiment generally to turn more cautious.
Source : DTZ (Groupe UGL)