(Yicai) Feb. 7 -- Ganzhou is showing signs of real estate recovery since the southeastern municipality was China's only third-tier city to record price increases for both new and secondhand homes in December, driven by growth in emerging industries such as rare earths, new energy, and humanoid robots.

Ganzhou's new home prices rose 0.3 percent in December from a month earlier, marking the first increase in 19 months, according to the latest data from the National Bureau of Statistics, which tracks 70 major cities. The local secondhand home market saw a 0.4 percent increase after 16 consecutive months of decline.

A premium residential project by China Overseas Estate, a unit of China Overseas Land & Investment, achieved sales of CNY881 million (USD121 million) within 12 days of its late December launch in the city in Jiangxi province, Yicai learned from interviews.

"Even the developers didn't anticipate such strong sales, which shows considerable demand for high-end properties in this area," a local real estate marketer commented on the project to Yicai.

Rare Earths

Known for its rich rare earth resources and processing industry, Ganzhou contributes about one-third of China's large rare earth enterprise revenues, according to municipal data. The city hosts 26 rare-earth magnet material manufacturers and nearly 20 permanent magnet motor producers.

Ganzhou has capitalized on its natural resource advantages to foster the growth of businesses in downstream industries, including lithium-ion batteries and humanoid robotics. The city's gross domestic product grew 5.4 percent last year from 2023, while industrial value added surged almost 10 percent, both reaching three-year highs, according to local authorities.

"Ganzhou's strategic location and well-developed new industries have improved employment conditions, driving housing demand," Yan Yuejin, deputy head of E-House China Research and Development Institute's Shanghai branch, told Yicai.

"The growth of high-tech and advanced industries helps attract high-net-worth individuals to settle down, supporting the local real estate market," said Lu Wenxi, senior market analyst at Centaline Real Estate's Shanghai branch.

However, the recovery remains tentative. The stabilization in Ganzhou's property market during the last two months of 2024 largely stemmed from government policies and a natural correction after a significant downturn, Lu noted.

Moreover, emerging industries' impact on real estate may take time to materialize, as their influence tends to be long-term, Lu added.

Editor: Emmi Laine