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August 6, 2016

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Home » Business » Real Estate

Rising prices lift sales of homes

By Cherry Cao | August 6, 2016, Saturday | Print Edition

TRANSACTIONS of pre-owned homes rose to a four-month high in Shanghai in July as buyers rushed into the market fearful that prices of homes, whose average cost also climbed last month, would continue to surge.

Around 34,400 units of pre-occupied houses were sold across the city last month, up 29.2 percent from June, Shanghai Homelink Real Estate Agency Co said in a report released yesterday. The average price of these houses edged up 0.43 percent month over month to a record 28,200 yuan (US$4,233) per square meter.

“A red-hot land market since May has changed home-seekers’ expectations a lot, accelerating their momentum to enter the market as they fear that home prices would rise too fast to catch up,” said Lu Qilin, director of research at Shanghai Homelink.

“If such robust sentiment continues, the local housing market will very likely overheat again in September and October which is the traditional high season for property sales.”

Notably, stronger sales were seen in areas where land auctions made media headlines.

Home seekers’ inquiries in the outlying Zhoukang area in Pudong New Area and Sijing in Songjiang District rose notably while individual owners there also raised their asking prices by about 5 percent, said Lu Wenxi, a senior research manager at Shanghai Centaline Property Consultants Co.

“A strong momentum is expected to extend through August when quite a few land plots with better urban locations are scheduled to be released for bidding,” Lu predicted.

Shanghai’s existing housing index, which checks monthly price changes in 130 areas in the city, added 2.57 percent from June to 3,784 in July, the Shanghai Existing House Index Office said, faster than June’s 1.55 percent gain.

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