China's Red Hot First-Tier Real Estate Markets
Looser monetary policy has increased credit growth in China and driven a rebound in real estate demand through the country which saw March sales total 25.6 million sq.m., up 82.9% y-o-y to reach their highest March level for seven years.
As inventories have fallen, so price growth has emerged, particularly in China's first-tier cities, where it is outstripping growth elsewhere in the country.
Price growth in first-tier cities vs. average growth across 70 main cities (YoY, %), Jan 2013 - Jan 2016
It's against this backdrop that local governments in Shenzhen and Shanghai have introduced new policies to rein in demand and cool price growth in the residential sector.