High-end projects boost rise new home sales in Shanghai

New home sales in Shanghai rose for the third consecutive week as buyers pursued medium to high-end projects, the latest market data showed.

New home sales in Shanghai rose for the third consecutive week as buyers bought medium to high-end properties, the latest market data showed.

The area of new homes sold, excluding government-subsidized affordable housing, climbed 6.9 percent to 122,000 square meters during the seven-day period ending Sunday, Shanghai Centaline Property Consultants Co said in a report released today.

Pudong New Area led with weekly transactions of 22,000 square meters, a surge of 175 percent from the previous week. Remote areas such as Nanhui and Jiading District continued to see seven-day sales stay above the 10,000-square-meter threshold, according to Centaline data.

The average cost of a new home jumped 14 percent from the previous week to 59,013 yuan (US$8,880) per square meter, due to a structural shift toward medium to high-end projects.

"Eight of the 10 most popular developments cost more than 50,000 yuan per square meter, with prices in two of them exceeding 90,000 yuan per square meter," said Lu Wenxi, senior manager of research at Centaline. "By contrast, only one project in the top 10 list cost less than 30,000 yuan per square meter."

A housing project in Yuqiao of Pudong became the best-selling development after unloading 6,154 square meters, or 60 apartments, for an average unit price of 61,200 yuan per square meter. Next was a development in Nanhui, which sold 6,000 square meters, or 71 unit s, for an average unit price of 28,845 yuan per square meter during the same period.

New home supply, meanwhile, rebounded to an 8-week high of 61,000 square meters, Centaline data showed. 

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