Supply woes, high prices, heat drive down new home sales

By Cherry Cao | August 12, 2013, Monday |

Online Edition

NEW home purchases fell to a 25-week low in Shanghai last week as record heat, inadequate supply as well as continuously high prices jointly damped buyers’ sentiment.

The sales of new residential properties, excluding government-subsidized affordable housing, dropped 22 percent from the previous seven-day period to 149,100 square meters, the lowest weekly volume registered since mid-February, Shanghai Deovolente Realty Co said in a report released today.

Average price, meanwhile, fell 4.3 percent week-on-week to 22,352 yuan (US$3,646) per square meter, the lowest in 11 weeks, Deovolente data showed.

“Momentum among buyers plunged to the lowest in nearly six months as mercury soared to a historical record, making last week the hottest week this summer,” said Lu Qilin, a Deovolente researcher. “However, insufficient supply, particularly in mid- to low-end houses, and high home prices, should be the main reason behind sluggish sales.”

Only 137,800 square meters of new houses were released to the local market last week, unchanged from the previous week, according to Deovolente data.

Across the city, a residential project in outlying Songjiang District emerged as the best-selling development last week with 156 apartments being sold for an average 17,081 yuan per square meter.

As of Sunday, new home transactions in Shanghai totaled 262,000 square meters in August, an increase of 12.8 percent from same period a month ago, according to a separate report released today by Century 21 China Real Estate.

Business Real Estate

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Supply woes, high prices, heat drive down new home sales

Email this to your friend