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High gains in prices and values
By Cao Qian |
August 15, 2011, Monday
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Print Edition
Print Edition
SHANGHAI ranks second among 10 global cities in the growth of residential property prices over the past five-and-a-half years while gains in capital values of luxury properties in the city are the sixth fastest in a group of key international cities over the past 12 months, according to two industry reports released over the weekend by major international real estate companies.
Prices of residential properties surged 143 percent in the city between December 2005 and June 2011, trailing only Mumbai where home price skyrocketed 154 percent during the same period, according to the latest Savills World Class Cities Index, which also tracks Tokyo, London, Paris, Sydney, New York, Singapore, Hong Kong and Moscow.
Meanwhile, the values of residential properties across the 10 cities jumped 77 percent on average over the same period, with New York recording the smallest increase of 7 percent, according to Savills research.
"Shanghai's property market has developed rapidly and matured notably over the last five to 10 years," said Albert Lau, managing director of Savills China.
"While the central government has imposed a series of stringent measures since earlier this year to cool the overheated market, the values of properties have not shown any signs of falling but continue to hold steady though price rises have moderated over the past months," he said.
The prices of luxury properties - the top 5 percent of the mainstream housing market - rose 7.7 percent in Shanghai in the year to June 2011, the sixth-fastest growth after Hong Kong, where they gained an annual 16.1 percent, St Petersburg, Paris, Beijing and London.
"While the annual price growth of prime properties in key cities has slowed rapidly, there seems to be a wide (price) divergence between properties in the mainstream and prime markets," said Liam Bailey, head of residential research at Knight Frank. "Prime residential markets have acted as 'safe-havens' for investors over the past two years."
Prices of residential properties surged 143 percent in the city between December 2005 and June 2011, trailing only Mumbai where home price skyrocketed 154 percent during the same period, according to the latest Savills World Class Cities Index, which also tracks Tokyo, London, Paris, Sydney, New York, Singapore, Hong Kong and Moscow.
Meanwhile, the values of residential properties across the 10 cities jumped 77 percent on average over the same period, with New York recording the smallest increase of 7 percent, according to Savills research.
"Shanghai's property market has developed rapidly and matured notably over the last five to 10 years," said Albert Lau, managing director of Savills China.
"While the central government has imposed a series of stringent measures since earlier this year to cool the overheated market, the values of properties have not shown any signs of falling but continue to hold steady though price rises have moderated over the past months," he said.
The prices of luxury properties - the top 5 percent of the mainstream housing market - rose 7.7 percent in Shanghai in the year to June 2011, the sixth-fastest growth after Hong Kong, where they gained an annual 16.1 percent, St Petersburg, Paris, Beijing and London.
"While the annual price growth of prime properties in key cities has slowed rapidly, there seems to be a wide (price) divergence between properties in the mainstream and prime markets," said Liam Bailey, head of residential research at Knight Frank. "Prime residential markets have acted as 'safe-havens' for investors over the past two years."
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