New-home prices poised to soar over next few decades

The price of a new home in China will nearly quintuple in three decades despite sharp drops in transaction volumes, according to a recent report released by China International Capital Corporation Ltd.

By 2050, the average price of new houses in China will break 30,000 yuan ($4,500) per square meter, and prices in cities such as Beijing, Shanghai, Guangzhou and Shenzhen will rise up to 70,298 yuan, although the average price in 2015 was only 6,472 yuan and 21,505 yuan, respectively, the report said.

The transaction volume will witness significant changes, the report said. The trade volume nationwide will cut by nearly half from 1.12 billion sq m in 2015 to 671 million sq m in 2050. In first-tier cities, the volume will reach a peak of 58.7 million sq m in 2025, and then shrink to 40.6 million in 2050.