(Yicai Global) March 24 -- Frantic property buying in some urban areas of China is an indication that the country's real estate market is picking up despite the ongoing coronavirus epidemic, according to a new report.

Transactions of CNY1.2 billion (USD169.2 million) were made in just the first minute of apartment presales in three condos in Suzhou, southeastern Jiangsu province on March 20, financial information platform Chnfund said in a report published today. CNY299 million (USD42.2 million) worth was sold in a complex in Shenzhen within seven minutes on March 16.

Demand for property went on hold for two months amid the coronavirus outbreak, the report said, citing industry insiders. Now that the situation is returning to normal, people are rushing to buy homes near schools and in other good locations, leading to frenzied buying.

But hot sales only signal a partial recovery in the sector and this is not an overall trend, analysts said. China's property market will continue to be guided by government policy: homes should be places to live in and not for speculative investment, they added.

The People's Bank of China reiterated on March 4 that property market policies will remain consistent and stable and will not be relaxed to give a short-term economic stimulus.

Healthy Development

The central bank's position was reinforced by Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission, on March 22. He said the government will promote the market's steady and healthy development by making sure homes are for living in, and not for speculating on. Local governments should co-operate to ensure the safe handling of hidden debts, he added.

Markets in the major metropolises of Shanghai, Beijing and Nanjing have rebounded significantly. Shanghai has just seen its best week for new property sales since the end of January. In the second week of March, the city sold 68,149 square meters of property, up 26.1 percent from the same period in February.

Some 3,951 pre-owned homes changed hands in Nanjing in the first half of this month, which is 78 percent of the total sold last March, according to sales data.

Netizens discovered that three apartment complexes in Shenzhen claim to have sold out, when in fact they have not. They are selling apartments to people who pay a CNY1 million (USD141,318) 'name changing fee.' After paying the fee, house purchasers are still not allowed to visit the property.

Even with such a fee, the price of a new apartment in the area is still cheaper than that of a pre-owned one in surrounding areas due to the price cap on new houses, according to a local real estate agent.

Editor: Kim Taylor