China’s metropolitan areas have witnessed a financial and property revival while the recovery in smaller cities has been much slower. The home sales volume in tier-1 cities surged 42.9% in teh first half of this year from last year. For tier-2 cities the uptick was 16.9% and for tier-3 cities there was a fall of 2.9%.
The recovery for the housing market in tier-3 and tier-4 cities is weighted down by high inventories, according to Zhang Dawei, chief analyst at Centaline.
China reduced the down payment levels for second-home buyers in March. It is now 40%, rather than the 60-70% that was previously required. They also exempted business tax for sales of homes that are purchased over two years ago.
Read the whole article to see more of the nuance of the issue.