New home sales fall in Shanghai

By Cherry Cao | April 7, 2015, Tuesday |

Online Edition

BOTH new home sales and supply fell in the city last week despite favorable policies announced by the central government, according to latest market data.

The purchases of new residential properties, excluding government-subsidized affordable housing, dropped 10.5 percent from a week earlier during the seven-day period ended Sunday, Shanghai Uwin Real Estate Information Services Co said in a report released today.

On the supply side, new houses totaling 71,100 square meters were released to the local market during the same period, a week-over-week plunge of 64 percent.

"While the latest government endeavor to loosen its mortgage policies is supposed to help boost residential sales of both new and existing home, it is always the price and the supply and demand situation that finally affect the transaction volume," said Huang Zhijian, chief analyst at Uwin. "Real estate developers, therefore, had better remain cautious about their pricing strategy and focus on cutting the inventory which still stands at high levels."

Second-time home buyers will have their minimum down payment reduced to 40 percent from the previous 60-70 percent, the People's Bank of China, the Ministry of Housing and Urban-Rural Development and the China Banking Regulatory Commission said in a joint statement on March 30.

For first-time buyers using housing provident funds, they will have to pay a minimum of 20 percent as a down payment, down from the previous 30 percent, according to the statement.

Real Estate

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New home sales fall in Shanghai

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