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Homes supply boom expected
By Cao Qian |
August 24, 2011, Wednesday
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Print Edition
Print Edition
NEARLY 70 residential projects are set to be released in Shanghai over the coming two months and the supply may grow further as real estate developers gear up for September and October - the traditional high season for home sales.
A total of 69 housing projects, 80 percent of them apartment developments, are being prepared for sale during September and October, according to research by real estate website Soufun.com - only slightly higher on a monthly basis than the 33 projects slated to be on offer this month - but more are expected to come to the market.
In the high season a year ago, 91 residential projects were launched in the city, Soufun said.
Tang Zhengwei, a Soufun analyst, said: "As the traditional high season approaches, more developers may release projects, so we expect the number to grow further. In particular, six projects within the Inner Ring Road will be introduced during this period, a notable increase over August."
About a quarter of the projects to be released are in Pudong New Area - the highest number of all the districts. Jiading and Songjiang follow, with nine developments each.
In terms of price, 24 projects will cost an average of between 15,000 yuan (US$2,340) and 30,000 yuan per square meter while five will cost more than 50,000 yuan per square meter, according to Soufun.
Shanghai Uwin Real Estate Information Services said supply of new homes, excluding affordable housing, hit a five-month low in Shanghai in the first week of August but has climbed continually since then.
Industry analysts have predicted that with an increasing supply of new homes, developers with projects in areas with already high inventories, such as outlying Jiading New Town and Zhoukang in Pudong, are likely to offer discounts - possibly around 10 percent.
In the existing home market, buying momentum is likely to stay sluggish over the next two months as the majority of home owners remain reluctant to offer attractive discounts, analysts said. As a result, "many previously occupied houses are now more expensive than new ones," said Chen Yujue, vice general manager of Shanghai Centaline Property Consultants.
A total of 69 housing projects, 80 percent of them apartment developments, are being prepared for sale during September and October, according to research by real estate website Soufun.com - only slightly higher on a monthly basis than the 33 projects slated to be on offer this month - but more are expected to come to the market.
In the high season a year ago, 91 residential projects were launched in the city, Soufun said.
Tang Zhengwei, a Soufun analyst, said: "As the traditional high season approaches, more developers may release projects, so we expect the number to grow further. In particular, six projects within the Inner Ring Road will be introduced during this period, a notable increase over August."
About a quarter of the projects to be released are in Pudong New Area - the highest number of all the districts. Jiading and Songjiang follow, with nine developments each.
In terms of price, 24 projects will cost an average of between 15,000 yuan (US$2,340) and 30,000 yuan per square meter while five will cost more than 50,000 yuan per square meter, according to Soufun.
Shanghai Uwin Real Estate Information Services said supply of new homes, excluding affordable housing, hit a five-month low in Shanghai in the first week of August but has climbed continually since then.
Industry analysts have predicted that with an increasing supply of new homes, developers with projects in areas with already high inventories, such as outlying Jiading New Town and Zhoukang in Pudong, are likely to offer discounts - possibly around 10 percent.
In the existing home market, buying momentum is likely to stay sluggish over the next two months as the majority of home owners remain reluctant to offer attractive discounts, analysts said. As a result, "many previously occupied houses are now more expensive than new ones," said Chen Yujue, vice general manager of Shanghai Centaline Property Consultants.
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