Property market shows sign of recovery as sales, volume rise

Property market showed strong sign of recovery in second quarter of 2015. Sales price and volume surged in 30 sample cities whereas in four tier 1 cities - Beijing, Shanghai, Guangzhou, Shenzhen - the figures reached a five-year high, according to data from E-house China R&D Institute (E-house), a Shanghai-based property research company.

According to E-house the average sale price in 30 cities was 12,187 yuan per square meter, up 11 percent from July and 16.5 percent from same period in 2014. Huge sale volume surge in second quarter pushed up sale price considerably, higher land cost also contributed to higher sales price, according to property analyst Xie Jinlong at E-house.

Property price in tier 1 and tier 2 cities experienced stronger price and volume surge. The sales volume and price in tier 3 cities were dragged down by large inventories of properties.

"With further policy easing and bullish speculation among property investors, property market will sees more recovery in third quarter," said Xie Jinlong.