City's new home market remains robust

By Cherry Cao | October 28, 2013, Monday |

Online Edition

THE strength of Shanghai's new home market has been extended for another week as momentum among both buyers and real estate developers continued to be robust.

Purchases of new residential properties, excluding government-funded affordable housing, rose 8 percent from the previous week to 357,700 square meters during the seven-day period ended Sunday, staying above the 300,000-square-meter threshold for the third straight week, Shanghai Uwin Real Estate Information Services Co said in a new report.

New home supply, meanwhile, surged 63.2 percent week-on-week to 515,100 square meters, a demonstration of strong sentiment among developers.

"Though tightening policies remained unchanged, the city's housing market has become overheated with both transaction volume and average price staying at rather high levels," said Huang Zhijian, chief analyst at Uwin. "There's an apparent imbalance between supply and demand in the market at the moment, particularly in the mid- to low-end segment."

At the current pace of sale, it would only take 5.7 months for the city's total inventory of new homes, excluding villas, to be sold out while for apartments no larger than 100 square meters, it could take as short as 3.7 months to digest the stock, according to Uwin research.

Theoretically, somewhere between seven and eight months indicates a good balance between supply and demand.

By price, the average cost for a new home stood at 25,011 yuan (US$4,080) per square meter, a weekly retreat of 5.7 percent.

In the latest statement made by the local government, Shanghai Mayor Yang Xiong said over the weekend at the 25th International Business Leaders' Advisory Council for the Mayor of Shanghai that the city would maintain a tight stance over soaring home prices and continue to increase home supply and construction of affordable housing projects

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

City's new home market remains robust

Email this to your friend