Related News

Home » Business » Real Estate

Demand rally overturns drop in second-hand home prices

PENT-UP demand, which had been released after prices underwent a correction, has finally overturned a seven-month consecutive decline in Shanghai's used apartment market.

The monthly second-hand housing index, which tracks prices of existing homes in 52 areas across the city, rose 1.12 percent to 2,318 last month - the first gain since August.

"The transaction volumes and prices both recovered last month as houses became more affordable to buyers after prices were reduced," said Chi Shengyu, an analyst at the index compiler's office. "In particular, a major rebound has been noticed in five downtown districts, which indicated that some investors are coming back as well."

Luwan District led the gainers with a monthly increase of 2.17 percent in transaction prices, followed by Changning, Xuhui, Huangpu and Jing'an districts, which grew 2.16 percent, 2.01 percent, 1.78 percent and 1.43 percent, respectively, the compiler said.

Across the city, 50 out of the total of 52 monitored areas saw an increase over the past month, with an average 1.72 percent.

In particular, second-hand homes in Sanlin in Pudong New Area, recorded the biggest price jump of 3.38 percent, followed by those in Huangpu's City God Temple area, which rose 3.32 percent, and Changning's Zhongshan Park area, which gained 3.13 percent month on month.

The only two losers last month were Putuo's Zhenbei area, dipping 0.99 percent, and Pudong's Luoshan area, losing 0.68 percent.

A total of 2.05 million square meters of second-hand homes were sold in Shanghai last month, a surge of 74 percent from February, while the average price rose 1.97 percent to 11,201 yuan (US$1,640) per square meter, latest data released by Century 21 China Real Estate showed.

Separately, the local rental index, also released by the compiler, added 2 points to 1,198 last month, ending five consecutive months of decline.

Rents for mid to low-class apartments climbed slightly while demand for high-end apartments still remained sluggish.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend