New home sales boom amid surge of new supplies

Cao Qian
Residential property sales in Shanghai jumped 33.5 percent last week as pent-up demand is unleashed. New supplies also exploded by more than 200 percent.
Cao Qian

New home buying momentum accelerated for the third straight week in Shanghai amid soaring new supply, the latest market data show.

The total area of new residential properties sold, excluding government-funded affordable housing, jumped 33.5 percent week over week to around 171,000 square meters during the seven-day period ending Sunday, Shanghai Centaline Property Consultants Co said in a regular weekly report released on Monday.

Across the city, outlying areas continued to drive the market with Songjiang District surging to top market position, finishing at 23,000 square meters, or a week-on-week increase of 35.3 percent. Baoshan District, meanwhile, fell to second place with transaction volume shedding 26.9 percent to 19,000 square meters. Qingpu District followed most closely with weekly sales standing at some 16,000 square meters.

These new homes sold for an average price of 57,731 yuan (US$8,144) per square meter, up 0.1 percent from the previous week, according to Centaline data.

"As new supply rolled into the market one after another, pent-up demand among home seekers which has been largely curbed by the COVID-19 outbreak finally transformed into robust sales in a batch of projects across the city," said Lu Wenxi, Centaline's senior researcher. "The strong momentum will probably extend for a while amid the latest surge in new supply."

Topping all in the bestseller list was a project in Nanhui, where 5,257 square meters, or 50 apartments, were sold for an average price of 45,188 yuan per square meter. A Shui On Land development in Hongkou District ranked No.2 after unloading 4,749 square meters, or 31 apartments, at an average cost of 105,845 yuan per square meter. A Greenland project in Dongjiadu, Huangpu District, which has been among the bestsellers for a couple of weeks, fell to third place after selling 4,347 square meters, or 22 units, for an average price of 135,331 yuan per square meter.

By price point, half of the 10 bestselling projects cost less than 50,000 yuan per square meter.

On the supply side, a total of 510,000 square meters of new homes, spanning 16 projects across almost all segments, were released into the local market last week, a surge of 218.5 percent from the previous seven-day period, according to Centaline data.

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