(Yicai Global) June 21 -- Sales of premium properties priced above CNY10 million (USD1.4 million) are gaining pace in China but demand is still not enough to boost the country’s entire real estate market, which remained sluggish from January to May, according to the latest data.

Sales of high-end homes priced between CNY10 million (USD1.4 million) and CNY30 million surged 45 percent in the five months ended May 31 from a year ago, according to statistics from real estate think tank CRIC Research Center.

And in the big cities Hangzhou in southeastern Zhejiang province, Xiamen in southeastern Fujian province, Chengdu in southwestern Sichuan province and Dongguan and Foshan in southern Guangdong province, the sale of properties in that price bracket more than doubled, the think tank said.

While sales of premium properties priced between CNY30 million (USD4.1 million) and CNY50 million jumped 13 percent, and that for houses priced above CNY50 million surged 35 percent, it added.

The macroeconomy is having less of an impact on the high-end housing market, but the demand is not sufficient to help the entire property market, real estate research firm 58 Anjuke Institute said in a recent report.

Luxury properties are still a popular choice among the rich who are looking to hedge against rising inflation and also gain from an appreciation in value against a backdrop of global inflation and currency depreciation, according to online travel agency Leyoujia.

Although large homes are more expensive than smaller homes in the same housing developments, the larger units are selling faster, Yicai Global found during visits to Foshan and Zhongshan in Guangdong province.

Homes with a floor area of more than 200 square meters in a residential project in Foshan sold out soon after sales began, a salesperson told Yicai Global. Big homes are popular because there is limited supply coming on the market but demand for better living conditions is growing.

And sales of pre-owned high-end homes are also strong. The turnover of second-hand luxury houses with a price tag of over CNY15 million (USD2 million) each in Shenzhen is rising compared with the whole used housing market, Leyoujia said.

Although property sales slowed in Shenzhen in April, that of high-end houses kept increasing and reached a new high of 7.5 percent in June, it added.

Editors: Tang Shihua, Kim Taylor