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Discounts trigger new home sales surge
By Cao Qian |
March 5, 2012, Monday
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Online Edition
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PURCHASES of new homes in Shanghai last week surged to the highest in about seven months, triggered by significant discounts offered by real estate developers, according to market data released today.
Sales of new homes, excluding government-funded affordable housing, rose 43.5 percent from the previous week to 201,500 square meters, extending its rally for the fifth straight week, Shanghai Deovolente Realty Co said in a report released today.
They were sold for 20,486 yuan (US$3,246) per square meter on average, an increase of 5.1 percent from the week earlier, mainly due to recuperating sales of luxury properties.
"More real estate developers have joined price-cutting campaigns to boost sales which could therefore explain a steady recovery in buying sentiment among home seekers since the end of the Spring Festival," said Lu Qilin, a researcher at Deovolente.
"Moreover, the city's revised criteria for 'ordinary' homes, coupled with lowered mortgage rates for first-time home buyers, also served as an impetus for the rebound."
A Poly Real Estate project in Gucun, northern Baoshan District, fetched sales of 257 apartments last week, or the most in the city, after the developer introduced a discount of nearly 20 percent.
While mid- to low-end homes continued to lead transactions, the past seven-day period ended Sunday also witnessed a clear recovery in luxury deals.
A total of 35 housing units, costing more than 50,000 yuan per square meter on average, were sold across the city last week, compared to 9 units recorded the week earlier, Deovolente data showed.
"We expect to see more developers to follow the example of Poly in the coming month to trim their stocks," said Huang Zhijian, chief analyst at Shanghai Uwin Real Estate Information Services Co. "More of them seem to be ready to gear up."
Nearly 170,000 square meters of new houses at nine developments were released to the local market last week, a surge of 150 percent from the week earlier, according to Uwin data.
Sales of new homes, excluding government-funded affordable housing, rose 43.5 percent from the previous week to 201,500 square meters, extending its rally for the fifth straight week, Shanghai Deovolente Realty Co said in a report released today.
They were sold for 20,486 yuan (US$3,246) per square meter on average, an increase of 5.1 percent from the week earlier, mainly due to recuperating sales of luxury properties.
"More real estate developers have joined price-cutting campaigns to boost sales which could therefore explain a steady recovery in buying sentiment among home seekers since the end of the Spring Festival," said Lu Qilin, a researcher at Deovolente.
"Moreover, the city's revised criteria for 'ordinary' homes, coupled with lowered mortgage rates for first-time home buyers, also served as an impetus for the rebound."
A Poly Real Estate project in Gucun, northern Baoshan District, fetched sales of 257 apartments last week, or the most in the city, after the developer introduced a discount of nearly 20 percent.
While mid- to low-end homes continued to lead transactions, the past seven-day period ended Sunday also witnessed a clear recovery in luxury deals.
A total of 35 housing units, costing more than 50,000 yuan per square meter on average, were sold across the city last week, compared to 9 units recorded the week earlier, Deovolente data showed.
"We expect to see more developers to follow the example of Poly in the coming month to trim their stocks," said Huang Zhijian, chief analyst at Shanghai Uwin Real Estate Information Services Co. "More of them seem to be ready to gear up."
Nearly 170,000 square meters of new houses at nine developments were released to the local market last week, a surge of 150 percent from the week earlier, according to Uwin data.
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