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Price cuts a boost for high-end house sales
By Cherry Cao |
June 1, 2012, Friday
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Print Edition
Print Edition
SALES of mid and high-end residential properties in Shanghai rose to their highest level in a year last month thanks to price cuts.
New homes sold for more than 30,000 yuan (US$4,739) per square meter totaled 155,000 square meters during the first 30 days of May, a 30 percent increase over April, Shanghai Deovolente Realty Co said yesterday.
"The monthly volume was the highest since June 2011 and more than 70 percent of the houses carried a price tag of between 30,000 yuan and 50,000 yuan a square meter," said Lu Qilin, a researcher at Deovolente. "Notable discounts offered by real estate developers, the majority of whom expect no policy loosening in the short term, proved to be very effective in boosting sales."
For example, a China Resources residential project in New Jiangwan Town in northeastern Yangpu District had sold 57 units in May as of Wednesday at an average price below 37,000 yuan per square meter, down from the previous average of 43,000 yuan.
Meanwhile, an Overseas Chinese Town Group project on downtown Xikang Road in western Putuo District sold 27 units in the same period after its developer dropped its price to around 46,600 yuan per square meter from more than 50,000 yuan.
In the luxury segment, costing more than 50,000 yuan a square meter, a Greenland residential project in Xuhui District sold 33 units at an average of 63,200 yuan per square meter.
The Arch, a Sun Hung Kai Properties development in the Pudong New Area, sold 11 units at an average of 111,000 yuan per square meter.
The city's existing home market witnessed a lackluster performance as individual owners were reluctant to cut prices.
"More areas, in particular downtown locations, saw price gains last month as more owners became firm again in retaining their asking prices. That was unlike a few months ago when a discount of between 5 and 10 percent was frequently seen," said Lu Bei, an analyst at the Shanghai Existing Index Office.
Across the city, the average price of existing houses in 66 of the 128 areas tracked by the office dipped 0.11 percent in May, down from 0.24 percent in April. Thirty-two areas remained flat and 30 gained an average of 0.16 percent.
New homes sold for more than 30,000 yuan (US$4,739) per square meter totaled 155,000 square meters during the first 30 days of May, a 30 percent increase over April, Shanghai Deovolente Realty Co said yesterday.
"The monthly volume was the highest since June 2011 and more than 70 percent of the houses carried a price tag of between 30,000 yuan and 50,000 yuan a square meter," said Lu Qilin, a researcher at Deovolente. "Notable discounts offered by real estate developers, the majority of whom expect no policy loosening in the short term, proved to be very effective in boosting sales."
For example, a China Resources residential project in New Jiangwan Town in northeastern Yangpu District had sold 57 units in May as of Wednesday at an average price below 37,000 yuan per square meter, down from the previous average of 43,000 yuan.
Meanwhile, an Overseas Chinese Town Group project on downtown Xikang Road in western Putuo District sold 27 units in the same period after its developer dropped its price to around 46,600 yuan per square meter from more than 50,000 yuan.
In the luxury segment, costing more than 50,000 yuan a square meter, a Greenland residential project in Xuhui District sold 33 units at an average of 63,200 yuan per square meter.
The Arch, a Sun Hung Kai Properties development in the Pudong New Area, sold 11 units at an average of 111,000 yuan per square meter.
The city's existing home market witnessed a lackluster performance as individual owners were reluctant to cut prices.
"More areas, in particular downtown locations, saw price gains last month as more owners became firm again in retaining their asking prices. That was unlike a few months ago when a discount of between 5 and 10 percent was frequently seen," said Lu Bei, an analyst at the Shanghai Existing Index Office.
Across the city, the average price of existing houses in 66 of the 128 areas tracked by the office dipped 0.11 percent in May, down from 0.24 percent in April. Thirty-two areas remained flat and 30 gained an average of 0.16 percent.
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