Land parcel sales in first half 15 percent higher than last year

Land parcels totaling 1.39 million square meters were sold in Shanghai in the first half of this year, a rise of 15 percent from the same period a year ago.

Land parcels totaling 1.39 million square meters were sold in Shanghai during the first half of this year, an increase of 15 percent from the same period a year ago, the latest industry report showed.

Altogether 42 pieces of land designated for various development purposes, including office, retail and residential, were transacted between January and June, a rise of 13 from the first half of 2017, Shanghai Homelink Real Estate Agency Co said in a report released on Friday.

Notably, only two land parcels designated for mass market residential development, meaning new homes excluding government-subsidized affordable housing, were sold during the six-month period, both at their asking prices. That was in sharp contrast to 11 residential leasing plots transacted during the same period.

The 11 plots for rental purposes, located in seven districts across the city including downtown Jing'an, Xuhui and Yangpu, as well as remote Chongming, Qingpu, Songjiang and Baoshan, are expected to generate total new supply of about 607,000 square meters of rental apartments, according to Homelink data.

"The local land watchdog was very cautious in releasing mass market residential plots in the first six months of this year as the city proceeds its fight against housing speculation," Homelink said in its report. "However, we expect to see major recovery in supply of parcels designated for mass market residential development in the second half of this year amid a continuously stabilized property market and strictly implemented tightening policies."

In terms of price, the 42 plots were sold at an average premium of 2.9 percent, Homelink data showed. That compared to 26.6 percent registered in the first half of 2017 and 5.6 percent recorded in the second half of last year.


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