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Luxury home sales expected to increase
By Cao Qian |
June 16, 2011, Thursday
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Print Edition
Print Edition
SALES of new luxury homes will continue to pick up in Shanghai over the next couple of months while more real estate developers will offer discounts during the period, industry people said yesterday.
"While the city's overall residential sales market has remained sluggish amid ever-tightening mortgage policies at commercial banks, the luxury home market has regained its strength," said Lu Qilin, research head at Shanghai Deovolente Realty Co, an estate chain focused on the high-end residential market. "However, some developers, though not many, have already offered discounts to combat the negative impact caused by the government's purchase-ban policy which has been implemented in the city since February."
A total of 32,000 square meters of new homes, all costing above 50,000 yuan (US$7,716) per square meter, were sold in Shanghai last month, Deovolente data showed. A project called City Castle in downtown Jing'an District, with an average price of 77,600 yuan per square meter, sold 31 units, close to its best monthly sales record set in July 2009.
"The demand for luxury homes is still there despite the recent rein-in measures by the government, which mainly include a home-purchase ban and increased down payment and interest rates," said Chen Min, sales manager at Tomson Riviera Garden, a residential project in Huamu area of Pudong New Area with villas costing about 40 million yuan each. "In the long run, we remain upbeat about the market because high-end property will remain a perfect hedge against inflation and affluent domestic buyers will continue to be interested in owning a decent home in Shanghai."
While the transaction volume is widely expected to increase in the next few months, price discounts are also likely, Shanghai Centaline Property Consultants Ltd said.
"While the city's overall residential sales market has remained sluggish amid ever-tightening mortgage policies at commercial banks, the luxury home market has regained its strength," said Lu Qilin, research head at Shanghai Deovolente Realty Co, an estate chain focused on the high-end residential market. "However, some developers, though not many, have already offered discounts to combat the negative impact caused by the government's purchase-ban policy which has been implemented in the city since February."
A total of 32,000 square meters of new homes, all costing above 50,000 yuan (US$7,716) per square meter, were sold in Shanghai last month, Deovolente data showed. A project called City Castle in downtown Jing'an District, with an average price of 77,600 yuan per square meter, sold 31 units, close to its best monthly sales record set in July 2009.
"The demand for luxury homes is still there despite the recent rein-in measures by the government, which mainly include a home-purchase ban and increased down payment and interest rates," said Chen Min, sales manager at Tomson Riviera Garden, a residential project in Huamu area of Pudong New Area with villas costing about 40 million yuan each. "In the long run, we remain upbeat about the market because high-end property will remain a perfect hedge against inflation and affluent domestic buyers will continue to be interested in owning a decent home in Shanghai."
While the transaction volume is widely expected to increase in the next few months, price discounts are also likely, Shanghai Centaline Property Consultants Ltd said.
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