(Yicai) Oct. 16 -- The sales boom in premium housing is spreading to China’s second-tier cities from first-tier ones thanks to government policies that have boosted buyer confidence, especially among those looking to move upmarket. Housing projects in cities such as Nanjing and Chengdu have had buyers lining up since the start of the National Day holiday on Oct. 1.

The first batch of 64 luxury homes at a project in Nanjing, costing between CNY6 million and CNY9 million (USD843,000 and USD1.3 million) each, sold immediately during the seven-day holiday, while the first batch of 92 units at another high-end development in Chengdu were snapped up on their first day, Yicai learned.

The trend has continued after the holiday. Each of the 94 luxury homes in another Chengdu project, priced at more than CNY10 million (USD1.4 million) each, all went on their opening day of sales. Buyers also queued for a property project in Shenyang launched on Oct. 9, with all listings in two buildings bought within three hours.

“September and October are usually the peak seasons for property sales,” a marketer at a leading developer in East China told Yicai. “After the government launched a series of favorable policies for the industry, improving the market expectations and confidence of home buyers, those with a wait-and-see attitude made their move.”

The Chinese authorities have introduced a range of policies this year to support the country’s anemic real estate market, with the most recent announced on Sept. 24. These measures include a so-called white list of real estate projects and developers eligible for financial support, cheaper mortgages, and lower down-payment requirements.

A common feature of the recently sold-out properties is that they are mostly in residential projects with relatively high-end surroundings and better quality, targeting buyers seeking to improve their living conditions.

China has entered an era when residents are seeking to better their living conditions, according to Lu Wenxi, a senior analyst at Shanghai Centaline Property Agency. Premium properties not only lift a buyers' living standards, they are also a way of optimizing asset allocation, Lu said, adding that the sales boom in high-quality homes will likely continue for a long time.

But Lu also noted that while there is still much demand from first-time home buyers, more government policies are needed to boost their purchasing power and encourage them to buy.

Editors: Tang Shihua, Martin Kadiev