China's Land Market Transaction Drops in 2015
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Latest official data shows that transactions across 300 large and medium-sized cities nationwide numbered 24-thousand, down by 20 percent year-on-year. [File Photo: 163.com]

Industry experts say China's land market transactions decreased last year as demand softened.

The latest data shows that transactions across 300 large and medium-sized cities nationwide numbered 24-thousand, down by 20 percent year-on-year.

Meanwhile, transaction volume reached 2 trillion yuan, down 10 percent compared with 2014, but still at a high level due to high prices.

Zhu Daolin, professor of China Agricultural University, says the market's performance is in-line with expectations.

"On the one hand, the economic growth slowed down under the new normal. On the other hand, we have experienced a rapid development in the real estate market over the past ten years and now oversupply happened in different cities after most strong demands were satisfied. So, for real estate developers, reducing stock became important."

Despite a slowed market, first-tier cities including Beijing, Shanghai and Guangzhou still recorded good momentum.

There were a total of 600 transactions. Transaction volume reached over 500 billion yuan.

Zhu Daolin explains the reason why prices are so high.

"Investors mainly flocked to first-tier cities and competed with each other fiercely. Strong demand for investment and fierce competition in Beijing has pushed up land prices. Rising home demolition costs also pushed up real estate developers' spending."

Zhu added that land in Beijing is in short supply while the population has increased significantly in recent years.

Author： 　　　Source：xinhua　　　 Editor：Yang Fan