Shanghai home market continues the rebound
New home-buying sentiment continued to rebound in Shanghai last week with notably recovering sales in the high-end segment despite zero new supply for another week.
The total area of new residential properties sold, excluding government-funded affordable housing, jumped 66.4 percent week over week to around 32,000 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 remained the most sought-after with weekly sales of 5,826 square meters. Qingpu District continued to follow most closely with seven-day transactions hitting 3,318 square meters.
Along with steadily improving sales, the average price of a new home rose to a year-to-date high. New homes sold for an average 63,335 yuan (US$8,998) per square meter, a week-over-week increase of 23 percent, according to Centaline data.
“While outlying districts continued to lead the recovery, many of their downtown counterparts also began to regain some strength over the past week,” said Lu Wenxi, Centaline’s senior researcher. “Citywide, Xuhui was the only district that was still plagued by zero transaction.”
High-end projects accounted for half of last week’s top 10 projects in terms of sales, with three of them exceeding the 100,000-yuan-per-square-meter mark.
One development in Putuo outperformed all after selling 1,286 square meters, or nine units, for an average price of 108,728 yuan per square meter during the seven-day period. It was immediately trailed by a project in Yangpu District, which unloaded 1,174 square meters, or seven apartments, for an average cost of 103,173 yuan per square meter, Centaline data showed.
On the supply side, the loss of momentum among real estate developers lingered for a sixth consecutive week. As the COVID-19 outbreak hasn't been fully contained, it is unclear when most sales offices around the city can get back to normal operations, industry insiders say.