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Buyers may see fewer homes released
By Cao Qian |
October 23, 2010, Saturday
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Print Edition
Print Edition
FEWER apartments are expected to be released in the Shanghai market over the weekend after the Chinese central bank unexpectedly raised interest rates this week by 25 basis points, and governments continued restrictions on mortgages.
Some 467 new units at seven developments are going to be released, a drop of 68 percent from the previous weekend, real estate website Soufun.com said yesterday. The figures exclude public housing.
People who go out this weekend looking for homes will find the average asking price of new apartments at about 14,317 yuan (US$2,146) per square meter. That's a decrease of 28 percent from a week earlier.
The price, which is lower than the citywide average, reflects the fact that five of the seven projects are located out beyond the city's Outer Ring Road. The remaining two are in the neighboring cities of Kunshan and Taicang in Jiangsu Province.
"Our research has found that more real estate developers are postponing their sales plans after a new round of tightening measures from central and local governments have been introduced over the past weeks," said Lu Yiping, an analyst with Soufun.
For instance, sales of Great Mansion, a high-end residential development in Xujin, Qingpu District, by publicly listed Gemdale Corp have been postponed to next month from October. Another housing development in Songjiang District, due to open this month, has even been delayed to the end of the year.
Delays are one ploy; discounts are another. "More developers are willing to offer discounts nowadays in hopes of triggering buying sentiment," Lu said.
Soufun research said a total of 148 projects are offering discounts in the city, a number that has risen since mid-April when the central government began its crackdown on property speculators.
"Home-purchase restrictions, tightened mortgage terms and raised interest rates will curb demand from people who buy homes for themselves and people who buy homes for speculation," said Zhang Haiqing, an analyst with Shanghai Centaline Property Consultants Ltd.
Some 467 new units at seven developments are going to be released, a drop of 68 percent from the previous weekend, real estate website Soufun.com said yesterday. The figures exclude public housing.
People who go out this weekend looking for homes will find the average asking price of new apartments at about 14,317 yuan (US$2,146) per square meter. That's a decrease of 28 percent from a week earlier.
The price, which is lower than the citywide average, reflects the fact that five of the seven projects are located out beyond the city's Outer Ring Road. The remaining two are in the neighboring cities of Kunshan and Taicang in Jiangsu Province.
"Our research has found that more real estate developers are postponing their sales plans after a new round of tightening measures from central and local governments have been introduced over the past weeks," said Lu Yiping, an analyst with Soufun.
For instance, sales of Great Mansion, a high-end residential development in Xujin, Qingpu District, by publicly listed Gemdale Corp have been postponed to next month from October. Another housing development in Songjiang District, due to open this month, has even been delayed to the end of the year.
Delays are one ploy; discounts are another. "More developers are willing to offer discounts nowadays in hopes of triggering buying sentiment," Lu said.
Soufun research said a total of 148 projects are offering discounts in the city, a number that has risen since mid-April when the central government began its crackdown on property speculators.
"Home-purchase restrictions, tightened mortgage terms and raised interest rates will curb demand from people who buy homes for themselves and people who buy homes for speculation," said Zhang Haiqing, an analyst with Shanghai Centaline Property Consultants Ltd.
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