Suburbs drive rebound in Shanghai home sales, prices
New home-buying sentiment rebounded in Shanghai last week with outlying districts recording major recoveries.
The total area of new residential properties sold, excluding government-funded affordable housing, soared 380 percent week over week to around 19,000 square meters during the seven-day period ending Sunday, Shanghai Centaline Property Consultants Co said in its regular weekly report released on Monday.
Across the city, the Nanhui region of the Pudong New Area continued to dwarf all with weekly sales of 4,392 square meters. Qingpu and Songjiang districts followed most closely with seven-day transactions hitting 3,585 square meters and 2,297 square meters, respectively.
The average price of a new home also rebounded amid improving sales. New homes sold for an average 51,520 yuan (US$7,377) per square meter, a week-over-week increase of 28.2 percent, according to Centaline data.
“While most outlying districts began to recover, the downtown districts of Changning, Hongkou and Xuhui continued to register zero sales,” said Lu Wenxi, Centaline's senior research manager. “By projects, those priced below 50,000 yuan per square meter seemed to be the most popular among buyers.”
Citywide, a development in Qingpu topped last week’s best-selling list after unloading 1,263 square meters, or 11 units, of new homes at an average price of 39,170 yuan per square meter. It was also the only project in the city that managed to record double-digit sales by unit, Centaline data showed.
Meanwhile, the city’s new home market suffered zero new supply for the fifth consecutive week. Recent market conditions will probably extend through the end of this month as the COVID-19 outbreak remains unconstrained, according to Centaline predictions.