New policies make immediate impact

The release of cooling measures on March 25 has resulted in the home-buying frenzy being effectively tempered in Shanghai and Shenzhen, Guangdong province. The new policies include stricter home-purchasing requirements and the tightening of credit lines, according to industry experts.

The weekly trade volume of new homes in Shanghai fell from 785,500 square meters in the last week of March to 392,800 sq m in the first week of April, according to the property agency Centaline. Similarly, the volume in the secondary market fell from 536,900 sq m to 287,700 sq m.

Chen Lina, an analyst at Shanghai Sinyi Realty Agency and Consulting, said the daily trade volume of used homes fell from 2,008 units to 1,290 in the wake of the new measures. Furthermore, there was a 40 percent decline in the number of people looking for homes, and daily visits to properties fell by 36 percent.