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Shanghai sees land prices fall first time in 3 years
By Wang Yanlin |
December 29, 2011, Thursday
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VALUE of land sales in Shanghai fell for the first time in three years but more land was sold this year, Soufun.com said yesterday in a report.
It was mainly because more land was designated for affordable housing projects and the government's rein-in policy for home purchases also resulted in less demand by commercial developers.
A total of 13.4 million square meters of land in 281 parcels were sold this year across Shanghai, up 4.72 percent from a year earlier, said Soufun, a major real estate website.
However, their sales dropped 14.4 percent year-on-year to 118.3 billion yuan (US$18.7 billion), the first decrease in three years.
"Growing allocation of land for affordable housing is the main reason for more volume of land sales," said Zhang Wanyu, a Soufun analyst.
Land designated for government-funded housing projects grew 42.6 percent annually to 5.5 million square meters. Their sales surged 68.3 percent to 21.2 billion yuan.
In comparison, land for commercial housing projects declined 16.9 percent year-on-year to 4.8 million square meters and their sales dived 39.5 percent to 47 billion yuan.
The report said land sales for commercial uses remained relatively stable in both value and volume.
Among the 281 land parcels sold this year, 170 were auctioned at the asking prices. Their average premium rate was 17.6 percent this year, compared with 46 percent in 2010.
"The price drop reflects an overall weak land market in Shanghai, especially in the last quarter," Zhang said, noting that 27 land auctions were canceled this year due to a lack of interest and 20 of them occurred in the fourth quarter.
Despite the steep drop in land prices, Shanghai will further rein in housing speculation next year and continue to enforce the home-purchase restrictions, the local government said last week.
It was mainly because more land was designated for affordable housing projects and the government's rein-in policy for home purchases also resulted in less demand by commercial developers.
A total of 13.4 million square meters of land in 281 parcels were sold this year across Shanghai, up 4.72 percent from a year earlier, said Soufun, a major real estate website.
However, their sales dropped 14.4 percent year-on-year to 118.3 billion yuan (US$18.7 billion), the first decrease in three years.
"Growing allocation of land for affordable housing is the main reason for more volume of land sales," said Zhang Wanyu, a Soufun analyst.
Land designated for government-funded housing projects grew 42.6 percent annually to 5.5 million square meters. Their sales surged 68.3 percent to 21.2 billion yuan.
In comparison, land for commercial housing projects declined 16.9 percent year-on-year to 4.8 million square meters and their sales dived 39.5 percent to 47 billion yuan.
The report said land sales for commercial uses remained relatively stable in both value and volume.
Among the 281 land parcels sold this year, 170 were auctioned at the asking prices. Their average premium rate was 17.6 percent this year, compared with 46 percent in 2010.
"The price drop reflects an overall weak land market in Shanghai, especially in the last quarter," Zhang said, noting that 27 land auctions were canceled this year due to a lack of interest and 20 of them occurred in the fourth quarter.
Despite the steep drop in land prices, Shanghai will further rein in housing speculation next year and continue to enforce the home-purchase restrictions, the local government said last week.
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