Home » Business » Real Estate
New home deals may fall 70%
By Cao Qian |
May 29, 2010, Saturday
|
Print Edition
Print Edition
NEW home transactions in Shanghai may plunge 70 percent in May from a month earlier as several real estate developers are reluctant to slash prices amid uncertainties in the local market.
There were just 258,000 square meters of new homes, excluding those designated for relocated residents under urban redevelopment plans, sold in the first 27 days of this month, Shanghai Uwin Real Estate Information Services Co said yesterday.
"For the whole month, the figure should be around 300,000 square meters, and that could be a plunge from a month earlier when 1.02 million square meters of new houses were sold across the city," said Lu Qilin, a researcher at the firm. "On the supply side, more than 850,000 square meters of new housing were launched for sale this month, compared with 1.23 million square meters in April."
In mid-April, the central government unveiled several measures, including higher down payment and mortgage interest rates for buyers of second homes. These measures have sharply cut the number of deals in new and existing markets over the past few weeks. However, home prices in the city still remained rather high.
"Real estate developers are still waiting for detailed local guidelines because they find it hard to decide if they should cut prices or how much discounts to offer until they receive clearer signals from the government," said Sky Xue, an analyst at China Real Estate Information Corp. "The details will indicate whether the local government has a tough or mild stance toward the housing market."
Only a few developers have cut their prices and mainly in the city's outlying areas. For example, discounted prices for a residential project in Gucun, Baoshan District, are as much as 25 percent lower than six months earlier, analysts said.
China Vanke Co, the country's largest publicly listed developer, may cut apartment prices by 10 to 30 percent within three months, the Beijing News said yesterday, citing an unidentified sales agent. Local Vanke officials declined to comment yesterday.
There were just 258,000 square meters of new homes, excluding those designated for relocated residents under urban redevelopment plans, sold in the first 27 days of this month, Shanghai Uwin Real Estate Information Services Co said yesterday.
"For the whole month, the figure should be around 300,000 square meters, and that could be a plunge from a month earlier when 1.02 million square meters of new houses were sold across the city," said Lu Qilin, a researcher at the firm. "On the supply side, more than 850,000 square meters of new housing were launched for sale this month, compared with 1.23 million square meters in April."
In mid-April, the central government unveiled several measures, including higher down payment and mortgage interest rates for buyers of second homes. These measures have sharply cut the number of deals in new and existing markets over the past few weeks. However, home prices in the city still remained rather high.
"Real estate developers are still waiting for detailed local guidelines because they find it hard to decide if they should cut prices or how much discounts to offer until they receive clearer signals from the government," said Sky Xue, an analyst at China Real Estate Information Corp. "The details will indicate whether the local government has a tough or mild stance toward the housing market."
Only a few developers have cut their prices and mainly in the city's outlying areas. For example, discounted prices for a residential project in Gucun, Baoshan District, are as much as 25 percent lower than six months earlier, analysts said.
China Vanke Co, the country's largest publicly listed developer, may cut apartment prices by 10 to 30 percent within three months, the Beijing News said yesterday, citing an unidentified sales agent. Local Vanke officials declined to comment yesterday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
