Market plagued by zero supply
Shanghai's new housing market continued to be plagued by zero supply for the third straight week as momentum among real estate developers and home buyers remained sluggish.
The area of new residential properties sold, excluding government-subsidized affordable housing, fell 5.1 percent to 86,000 square meters last week, Shanghai Centaline Property Consultants Co said yesterday.
Citywide, only three districts managed to register weekly sales of more than 10,000 square meters, compared with five a week earlier.
These homes sold for an average 47,721 yuan (US$7,245) per square meter, a weekly gain of 5.8 percent mainly due to a structural shift, Centaline data showed.
A residential project in Nanhui in the Pudong New Area became the most popular project after selling 37 apartments for an average price of 33,747 yuan per square meter. It was followed by a high-end development in Zhabei, which sold seven units during the same period for 80,471 yuan per square meter on average.
“Not a single new home was released in the local market for sale for the third consecutive week, indicating extremely lackluster momentum among developers as most of them would achieve their annual sales target without any difficulty by the end of this month,” said Lu Wenxi, senior research manager at Centaline.