A general view of old and new apartment buildings in Shanghai. Sales of both new and existing houses are expected to register a month-on-month decline in Shanghai in June with prices remaining stable.
SALES of both new and existing houses are likely to register a month-on-month decline in Shanghai in June while prices remained stable, real estate companies said.
As of Sunday, sales of new homes, excluding those built under the city's affordable housing programs, totaled 627,600 square meters, according to Shanghai Uwin Real Estate Information Services Co.
"In May, a total of 831,000 square meters of new houses were sold across the city and there is almost no chance the June figure will exceed that volume," said Huang Zhijian, chief analyst with Uwin.
New home sales tumbled to a low of 178,000 square meters in February, the lowest in years, as a result of government rein-in measures as well as traditional sluggish momentum during the Spring Festival period. Though transaction volume rebounded between March and May it was still below record levels, Uwin data showed.
Buying sentiment was also slack this month in the existing home market.
"Compared to May, we've had fewer clients looking at homes and that will naturally lead to less deals," said Chen Yujue, deputy general manager of Shanghai Centaline Property Consultants Ltd, operator of the city's largest estate chain in terms of transaction value. "However, the majority of home owners continue to be firm on their asking prices despite the sluggish sentiment."
Chen also predicted between 10,000 and 15,000 units of existing homes will be sold in the city every month in the second half. Chen added some home owners may begin to drop asking prices in the next few months.