Weakness extends in Shanghai new housing market

Weakness extended in Shanghai's new housing market last week amid sluggish momentum among both home buyers and real estate developers, the latest market data showed.

Weakness extended in Shanghai's new housing market last week amid sluggish momentum among both home buyers and real estate developers, the latest market data showed.

The area of new residential properties sold, excluding government-subsidized affordable housing, dropped 21.5 percent to 94,400 square meters during the seven-day period ending on Sunday, Shanghai Centaline Property Consultants Co said in a report released on Monday.

Citywide, outlying Qingpu remained the best performing district, although it also took a plunge. About 13,200 square meters of new homes were sold there, a dive of 39.5 percent from the previous week. Jiading District and Nanhui in Pudong New Area followed closely with weekly transactions both hovering around 11,100 square meters, a decrease of 25 percent and 38.3 percent, respectively, according to Centaline data.

"Buying sentiment fell for the third consecutive week and seven-day sales of new houses dropped below the 100,000-square-meter threshold for the first time in four weeks, evidence that the market was short of strength for a major rebound," said Lu Wenxi, senior manager of research at Centaline.

The average cost of a new home climbed 3.9 percent from a week earlier to 48,822 yuan (US$7,645) per square meter, according to Centaline data.

Across the city, a residential development in Wujing, Minhang, which sold 5,800 square meters, or 65 apartments, for an average price of 46,467 yuan per square meter, emerged as the most popular project of last week. A housing development in Pudong grabbed second place in the top 10 list after unloading 5,104 square meters, or 35 units, for an average price of 79,448 yuan per square meter.

On the supply side, only about 22,800 square meters of new houses from one project were launched into the market, a plunge of 87.3 percent from the previous seven-day period.

Since April, a total of 11,200 new housing units spanning 32 projects have been released into the local market and some 3,500 units out of that were sold, according to a separate report released today by Shanghai Homelink Real Estate Agency.


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