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Shanghai’s property market shows signs of recovery

SHANGHAI'S new housing market continued to gain momentum last week, signals for a warm-up before an overall rebound as early as next month.

The purchases of new residential properties, excluding government-subsidized affordable housing, jumped 20.4 percent to 93,000 square meters during the seven-day period ended on Sunday, Shanghai Centaline Property Consultants Co said in a report released today.

These new homes sold for an average 48,900 yuan (US$7,094) per square meter, a week-over-week increase of 1.1 percent.

"The market has been picking up its strength recently at a rather moderate pace which is somewhat within our expectations," said Lu Wenxi, senior manager of research at Centaline. "The volume of upcoming new supply, particularly the supply of medium- to low-end apartments, as well as developers' pace of release, should be two important factors that might help decide whether the current rebound could be sustainable or a meaningful one."

Citywide, high-end and luxury projects continued to register comparatively robust sales with two of the five best-selling developments costing 80,000 yuan per square meter and above. A project in Pudong New Area led all with weekly sales of 63 untis at an average price of 87,481 yuan per square meter.

On the supply side, some 119,000 square meters of new residential properties were released into the local market, a week-on-week surge of 94.6 percent, Centaline data showed.

The majority of these new supplies are located in outlying areas such as Nanhui and Songjiang and cost no more than 40,000 yuan per square meter.

"That could be good for a faster recovery of the market," Lu said. "From previous experiences, a notable rebound usually begins with strong sales in the medium- to low-end segment."


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