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New home purchases drop 8.9% in Shanghai
By Cherry Cao |
June 11, 2012, Monday
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Online Edition
Online Edition
NEW home purchases in Shanghai failed to extend a two-week rally while a notable drop in the high-end segment dragged the average price down from a week earlier.
Sales of new homes, excluding government subsidized affordable housing, dropped 8.9 percent last week to 195,300 square meters, Shanghai Deovolente Realty Co said in a report released today.
"The volume still remained at a rather high level of around 200,000 square meters despite the weekly retreat," said Lu Qilin, a researcher at Deovolente. "If the current momentum continues, June will outperform May, which just registered the highest monthly volume in a year."
New home sales totaled 277,000 square meters in Shanghai during the first 10 days of this month, an increase of 12.9 percent from the same period a month earlier, Deovolente data showed.
The new houses, meanwhile, were sold at an average 22,529 yuan (US$3,536) per square meter last week, a weekly decline of 7.6 percent.
Twenty-four new residential properties with a price tag of more than 50,000 yuan a square meter were sold last week across the city, a week-on-week drop of 54 percent. During the same period, sales of villa developments stood at 80 units, a plunge of 66 percent from the previous seven-day period, according to data released today by Century 21 China Real Estate, which runs the largest estate network in Shanghai.
A China Overseas high-end housing development near Changfeng Park in Putuo District became the city's best-selling residential project last week when it sold 55 units during the period for an average of 37,721 yuan per square meter.
On the supply side, almost 240,000 square meters of new houses, about half of which were located within the Outer Ring Road, were released to the local market, a week-on-week surge of 95.5 percent.
"While the central bank's latest cut in interest rates will leave some positive impact on the housing market, developers, still facing record inventories and high debt ratios, will continue to face a tough time as the property curbs remain in place," said Huang Hetao, research manager at Century 21. "Offering discounts to buyers will continue to be an effective way to boost sales."
Sales of new homes, excluding government subsidized affordable housing, dropped 8.9 percent last week to 195,300 square meters, Shanghai Deovolente Realty Co said in a report released today.
"The volume still remained at a rather high level of around 200,000 square meters despite the weekly retreat," said Lu Qilin, a researcher at Deovolente. "If the current momentum continues, June will outperform May, which just registered the highest monthly volume in a year."
New home sales totaled 277,000 square meters in Shanghai during the first 10 days of this month, an increase of 12.9 percent from the same period a month earlier, Deovolente data showed.
The new houses, meanwhile, were sold at an average 22,529 yuan (US$3,536) per square meter last week, a weekly decline of 7.6 percent.
Twenty-four new residential properties with a price tag of more than 50,000 yuan a square meter were sold last week across the city, a week-on-week drop of 54 percent. During the same period, sales of villa developments stood at 80 units, a plunge of 66 percent from the previous seven-day period, according to data released today by Century 21 China Real Estate, which runs the largest estate network in Shanghai.
A China Overseas high-end housing development near Changfeng Park in Putuo District became the city's best-selling residential project last week when it sold 55 units during the period for an average of 37,721 yuan per square meter.
On the supply side, almost 240,000 square meters of new houses, about half of which were located within the Outer Ring Road, were released to the local market, a week-on-week surge of 95.5 percent.
"While the central bank's latest cut in interest rates will leave some positive impact on the housing market, developers, still facing record inventories and high debt ratios, will continue to face a tough time as the property curbs remain in place," said Huang Hetao, research manager at Century 21. "Offering discounts to buyers will continue to be an effective way to boost sales."
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