A year ago, the Chinese property market was heading for the basement as inventories built up and price cuts began to spill over from less prominent cities to the big metropolises. One third of properties on display at the exhibit last year were in cities other than Shanghai or even abroad. This year, Shanghai accounts for 90 percent; its highest share for three years.
Developers have also become unwilling to budge on prices and are offering fewer discounts. In a survey by real estate information provider SouFun, nearly 60 percent of respondents claimed plans to buy homes this year, many in the next three months.
"When buying sentiment is very strong, it is normal for developers to scale back discounts or even withdraw them altogether," a sales rep at the exhibit told Xinhua.
LESS PAINFUL CORRECTION
While easing has helped the biggest cities and done some good in the second tier, it has done little to revive third- and fourth-tier cities. In the three weeks when big cities experienced double-digit sales growth, smaller cities recorded a 26-percent decline.
Despite the improvement, Wang of UBS expects new housing starts in April to remain muted, as developers focus on slashing inventories.
A meeting of the Political Bureau of the Communist Party of China Central Committee on April 30 called for more "forceful" policies and "a long-term mechanism for the healthy development of the property sector".
The central bank has lowered interest rates twice since November and cut the reserve requirement ratio twice since February. Most analysts believe this year will be easier for developers than last.
"We expect 2015 to remain challenging, but less so than 2014, because the government will likely continue to loosen restrictions," said Franco Leung, a senior analyst with rating agency Moody's.
