Foreclosed properties in first-tier cities are seeing increased transactions.

Recently, the latest data released by multiple market institutions show that in the first five months of this year, the transaction volume of foreclosed residential properties in first-tier cities continued to grow, while the number of properties put up for auction has shrunk. From the national key cities' transaction data, it can be seen that the transaction of foreclosed residential properties is more concentrated in the scarce luxury homes in the core areas of first-tier cities. It was found that in the first five months of this year, the cumulative transaction volume of foreclosed residential properties in first-tier cities has approached 3000 units, an increase of over 1000 units since the end of the first quarter. At the same time, the clearance rate of foreclosed residential properties in first-tier cities has increased from 35% in the first quarter to over 40%. "Currently, the transaction of foreclosed properties is increasingly concentrated in the scarce luxury homes in the core areas of first-tier cities, and with the market becoming more mature and policy support gradually being implemented, the transaction volume of foreclosed properties in first-tier cities is increasing," said Zhang Xiaofei, a senior analyst at the China Index Research Institute, told reporters. Despite the increase in the transaction volume of foreclosed properties at present, their share in the real estate market is still less than 1%, the overall market size is still relatively small, so the fluctuations in the foreclosed property market are still difficult to have a substantial impact on the real estate market.