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Home sales and price decline
By Cao Qian |
July 19, 2011, Tuesday
|
Print Edition
Print Edition
NEW home buying sentiment fell for a second week in Shanghai, with the average price also falling amid lower sales of high-end properties, major real estate research companies reported.
Sales of new homes, excluding affordable housing, fell 6.7 percent from a week earlier to 141,000 square meters between July 11 and 17, a research released yesterday by Shanghai Deovolente Realty Co showed.
The average price, meanwhile, shed 3.9 percent weekly to 22,172 yuan (US$3,427) per square meter, mainly due to sluggish transactions of high-end properties. Sales of luxury houses, costing more than 50,000 yuan per square meter, plunged 34 percent from a week earlier to 6,200 square meters during the past seven days, Deovolente data showed.
However, some projects still managed to report quite robust sales, according to industry data.
Modern City in Zhangjiang High-Tech Park, a project by Tomson Group, remained at the top of the city's list of Top 3 best-selling residential projects for three straight weeks. A total of 254 units have been sold for an average 27,000 yuan per square meter since the project was released locally late last month, according to data compiled by Shanghai Uwin Real Estate Information Services Co.
"On one hand, unyielding housing prices are keeping qualified buyers on the sideline while on the other hand, home purchase restrictions continue to ban financially capable buyers from entering the market," said Lu Qilin, a researcher with Deveolente Realty. "Despite shrinking (sales) volumes in major cities, developers, mainly larger ones, still see no incentives to cut their prices because their business in smaller cities continued to be rather robust."
For the coming weeks, buying sentiment will be slack in the city.
"The low weekly transaction volume over the past two weeks indicated the local housing market has entered its traditional low season," said Huang Zhijian, chief analyst at Uwin. "Unless real estate developers offer some big prices cuts, there won't be a notable rise in buying sentiment in the weeks ahead."
Sales of new homes, excluding affordable housing, fell 6.7 percent from a week earlier to 141,000 square meters between July 11 and 17, a research released yesterday by Shanghai Deovolente Realty Co showed.
The average price, meanwhile, shed 3.9 percent weekly to 22,172 yuan (US$3,427) per square meter, mainly due to sluggish transactions of high-end properties. Sales of luxury houses, costing more than 50,000 yuan per square meter, plunged 34 percent from a week earlier to 6,200 square meters during the past seven days, Deovolente data showed.
However, some projects still managed to report quite robust sales, according to industry data.
Modern City in Zhangjiang High-Tech Park, a project by Tomson Group, remained at the top of the city's list of Top 3 best-selling residential projects for three straight weeks. A total of 254 units have been sold for an average 27,000 yuan per square meter since the project was released locally late last month, according to data compiled by Shanghai Uwin Real Estate Information Services Co.
"On one hand, unyielding housing prices are keeping qualified buyers on the sideline while on the other hand, home purchase restrictions continue to ban financially capable buyers from entering the market," said Lu Qilin, a researcher with Deveolente Realty. "Despite shrinking (sales) volumes in major cities, developers, mainly larger ones, still see no incentives to cut their prices because their business in smaller cities continued to be rather robust."
For the coming weeks, buying sentiment will be slack in the city.
"The low weekly transaction volume over the past two weeks indicated the local housing market has entered its traditional low season," said Huang Zhijian, chief analyst at Uwin. "Unless real estate developers offer some big prices cuts, there won't be a notable rise in buying sentiment in the weeks ahead."
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