Price of Shanghai’s existing homes hit new high

By Cherry Cao | June 8, 2016, Wednesday |

Online Edition

THE average cost of existing homes hit a record in Shanghai in May amid a double-digit rebound in sales, market data showed.

Pre-owned houses were sold for an average 27,500 yuan (US$4,178) per square meter, an increase of 6.9 percent from April, Shanghai Homelink Real Estate Agency Co said in a latest report.

Some 19,900 units of pre-occupied houses were sold across the city last month, a rebound of 14.1 percent from April, when sales plunged more than 60 percent from a month earlier following tightening measures by the local government to cool the overheated market.

"Sales recovered in May while average price rose to a record mainly due to a structural shift, indicating comparatively strong demand for medium- to high-end homes among local buyers," said Lu Qilin, director of research at Shanghai Homelink. "As the city's land market continued to demonstrate red-hot signs, more people are expecting home price increases and that might incur introduction of further rein-in measures by the government."

Lu Wenxi, a senior manager of research at Shanghai Centaline Property Consultants Co, shared a similar view.

"The recovery in buyers' sentiment was mainly fuelled by an overheated land market and in the short run, that situation would probably remain unchanged," Lu said.

Shanghai's existing housing index, which tracks monthly price changes across 130 areas in the city, climbed 1.83 percent from a month earlier to 3,626 in May, the Shanghai Existing House Index Office said in a separate report. That was a slowdown from April's 2.08 percent gain.

The prices of pre-owned houses rose in 94 areas, fell in 20 areas, and were flat in the remaining 16 areas.

In terms of supply, the local inventory of existing houses increased slightly to 144,351 units as of the end of May, a month-over-month rise of 1.6 percent, according to the office.

Real Estate

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Price of Shanghai’s existing homes hit new high

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