Shanghai housing market on recovery track

By Cherry Cao | April 20, 2015, Monday |

Online Edition

SENTIMENT among both home buyers and real estate developers continued to gain for the second straight week in Shanghai, evidence that the local housing market has been well on its track to a solid recovery.

The purchases of new residential properties, excluding government-subsidized affordable housing, rose 29.7 percent week-on-week to 284,300 square meters during the seven-day period ended Sunday, Shanghai Uwin Real Estate Information Services Co said in a report released today.

On the supply side, an even more notable growth was registered during the same period when 354,800 square meters of new housing developments were launched for sale citywide, a surge of 62.4 percent from the previous week, Uwin data showed.

"The seven-day transaction volume of new homes hit a 15-week high in Shanghai, indicating a quite strong recovery of the residential market," said Huang Zhijian, chief analyst at Uwin. "However, new housing supply still outnumbered sales so far this year in Shanghai so the high inventory still remains a concern at the moment despite the recent recovering signs."

Currently in Shanghai, new home inventory stays above 12.48 million square meters, or over 83,600 units, according to latest data posted on the city's official real estate website fangdi.com.

That, however, compared to sales of nearly 1.96 million square meters of new residential properties, or a little bit over 16,000 units, registered in Shanghai in the first quarter of this year, according to Fang.com, the country's largest real estate website, which was previously known as Soufun.com.

The new homes sold last week cost an average price of 27,186 yuan (US$4,385) per square meter, a week-over-week drop of 8.9 percent.

The decrease was mainly due to some structural shift. Six of the ten best-selling new residential projects last week were sold for a price of less than 20,000 yuan per square meter on average, while the most expensive one among the ten cost no more than 35,000 yuan per square meter.

As of Sunday, new home sales in Shanghai totaled 614,800 square meters in April, which may hopefully boost this month's volume to around 1 million square meters, Huang predicted.

Business Real Estate

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Shanghai housing market on recovery track

Email this to your friend