Beijing Property Market In April 2009
However, sales prices for residential and retail properties dropped slightly, while sales prices for office properties remained practically flat. In particular, according to data provided by the China Real Estate Index System (CREIS) for February 2009, sales prices in the overall Beijing property market registered a monthly drop of 0.4%.
The Residential Index indicates that Beijing housing prices in February 2009 dropped 0.4%. However, the Hedonic Price Index produced by CREIS for the residential sector, shows a considerably bigger monthly drop of 1.8%. It should be noted that the hedonic price index, is a considerably better indicator of price changes through time than simple averages because it controls for changes in the quality/location mix of properties transacted each period. The Retail Index shows that sales prices for retail properties in Beijing dropped 0.8% in February 2009, while the Office Index points to a negligible 0.07% monthly drop in office property prices. On an annual basis houses registered the biggest sales price drop of 4.6%, while sales prices for retail properties were only minimally (0.36%) below their February 2008 level. Sales prices for office properties were actually slightly above their February 2008 level by 0.41%.
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