Home market rebounds in Shanghai

By Cherry Cao | February 22, 2016, Monday |

Online Edition

SHANGHAI'S new housing market rebounded last week from the Spring Festival holiday doldrums as expected, latest market data showed.

The area of new residential properties sold, excluding government-subsidized affordable housing, jumped to 184,800 square meters during the seven-day period ended Sunday, a surge from 9,200 square meters registered in the previous week, Shanghai Homelink Real Estate Agency Co said in a report released today. The mean price of these new homes stood at 35,894 yuan (US$5,495) per square meter, a week-over-week increase of 7.5 percent.

Citywide, about 76,900 square meters of new houses from three projects were released to the local market last week, Homelink data showed. That compared to a zero supply recorded in the previous seven-day session.

"Market sentiment just recovered notably as we expected with the medium- to high-end segment performing well which as a result led to the increase in the mean cost of new homes," said Ke Xiaojuan, a researcher at Homelink. "The latest government measures introduced over the weekend are expected to further boost property sales in the city so we are seeing a very promising March in terms of both transaction volume and value."

Last Friday, the Ministry of Finance, the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development announced in a joint statement to cut deed and business taxes for home purchases in most Chinese cities. Effective today, buyers in four gateway cities including Shanghai will be eligible for a 1 percent rate in the “deed tax” when they purchase a house no larger than 90 square meters, or a 1.5 percent rate if the home is larger. To qualify for the preferential rate, the house must be the only property owned by the household, the statement said. That compared to the previous tax rates of between 1 percent and 3 percent.

Across the city, a residential development in Putuo District sold 85 apartment units for an average price of 52,054 yuan per square meter, making it the most sought-after project last week. and four of the ten most popular projects cost more than 50,000 yuan per square meter, Homelink data showed.

Business Real Estate

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Home market rebounds in Shanghai

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