Shanghai's new house sales suffer major setback

Shanghai's new housing sales market suffered a major setback last week, with medium to high-end homes dominating the top 10 list, the latest market data showed.

Shanghai's new housing sales market suffered a major setback last week, with medium to high-end homes dominating the top 10 list, the latest market data showed.

The area of new residential properties sold, excluding government-subsidized affordable housing, fell 21.5 percent to around 99,000 square meters during the seven days to Sunday, Shanghai Centaline Property Consultants Co said in a report released on Monday.

"For the first time in three weeks, weekly transaction volume failed to stay above the 100,000-square-meter threshold, with several remote districts recording significant drops in sales," Lu Wenxi, Centaline's senior research manager said. "Moreover, the local market was plagued again by zero new supply, indicating a temporary retreat in sentiment among real estate developers."

Across the city, the Pudong New Area led all with weekly new home transaction reaching 16,000 square meters, a weekly surge of 54.9 percent. The outlying district of Songjiang saw its seven-day volume narrowly surpass 10,000 square meters, a week-over-week drop of nearly 30 percent, while even remote Jiading District, which used to be one of the most popular among home seekers, failed to reach the 10,000-square-meter threshold after suffering more than 50-percent withdrawal in sales from a week earlier.

Citywide, new homes sold for an average 58,139 yuan (US$8,642) per square meter, a week-over-week increase of 7.2 percent, according to Centaline data.

In the top 10 list, six projects cost more than 80,000 yuan per square meter on average, including one asking for more than 100,000 yuan per square meter.

Outperforming all was a residential development in Sanlin of Pudong which sold 4,402 square meters, or 50 units, for an average price of 87,362 yuan per square meter. It was most closely trailed by a project in Baoshan District, where 4,113 square meters, or 37 new homes, were unloaded for 55,609 yuan per square meter on average, according to Centaline data.

On the supply side, not a single unit of new home was released in the city last week, as real estate developers chose to hold back for a while after building up momentum over the past few weeks.

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