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September 2, 2009

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Home » Business » Real Estate

Used home sales drop again

SHANGHAI'S existing home market last month recorded fewer sales for another month amid inadequate supply and decreasing affordability.

Transaction volume of existing houses fell by about 13 percent last month at Century 21 China Real Estate, operator of the city's second-largest brokerage chain.

"Robust sales of used homes over the past six months has already digested most of the city's existing inventory," said Wang Yusheng, a district director at Century 21.

"Our latest research has found that new supply of existing homes plunged by nearly 20 percent citywide from a month earlier during August."

The Minhang, Huangpu and Zhabei districts had the largest drop in volumes at 20 percent.

Shanghai Hanyu Property Consulting Co, another major player in the local market, also said yesterday that transaction volume at its branches retreated by 10 to 15 percent last month, with average prices climbing between 1 and 4 percent in different areas.

"We've noticed that many buyers, mainly those for improvement purposes, have postponed their home purchase plans as prices kept increasing," noted Shao Minghao, research head at Shanghai Hanyu. "Meanwhile, a rebounded supply of new homes last month also diverted some buyers, especially those looking for high-end properties."

Supply of new homes in Shanghai rebounded significantly to 1.58 million square meters last month, up 24 percent from July, according to Shanghai Uwin Real Estate Information Services Co.

Star River in Pudong New Area and Bund House in Huangpu District, two luxury residential projects that hit the local market last month asking more than 50,000 yuan per square meter, secured sales of 256 units and 65 units, respectively, by yesterday, according to the city's housing Website which tracks both new and existing home deals.

Statistics from Century 21 showed that existing homes costing more than 5 million yuan per unit dropped nearly 1 percentage point to 2.17 percent last month.


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