CHINA Vanke Co., the country’s largest property developer by revenue, said Friday that sales in 2013 rose 21 percent to 170.9 billion yuan (US$28.2 billion), buoyed by stronger-than-expected housing demand in major Chinese cities.

    In terms of floor space, Vanke’s sales totaled 14.9 million square meters, up 15 percent from a year earlier, Vanke said.

    Major property developers in China have reported strong housing sales for last year, underpinned by new launches and strong market sentiment, especially in larger cities.

    Homebuyers flocked back to the market after staying on the sidelines in 2011 and 2012, as many were driven by concern that rising property prices might put homes out of reach if they delayed purchases.

    “The housing market became more uneven across China in 2013,” said Tan Huajie, board secretary at China Vanke.

    Vanke’s housing sales in December reached 10.95 billion yuan, down 28 percent from the same month a year earlier. On a month-on-month basis, housing sales in December also declined 22 percent from the 14.04 billion yuan recorded in November. In terms of floor space, Vanke’s housing sales reached 976,000 square meters, down 16.6 percent from the same period a year earlier.

    Analysts say housing demand stemming from urban population growth, upgraders and first-time homebuyers has buoyed the property market and driven up home prices in major cities, where supply in downtown areas is starting to become constrained.

    The average price of housing in 100 cities rose 11.5 percent year on year in December, private data provider China Real Estate Index System said. This is the highest growth rate since it started collating data from June 2011.

    But some analysts said that the growth in housing sales and prices in 2013 is unlikely to be sustained in 2014, as the government is expected to ramp up supply of more affordable housing in major cities as well as expand the implementation of a property tax to more cities. (SD-Agencies)