Shanghai home market posts major rebound

Cao Qian
Residential property sales surged nearly 50 percent last week, when the city also ended its long-running dry spell in new supplies. Average price, meanwhile, drifted lower.
Cao Qian

Weekly sales of new homes surpassed the 100,000-square-meter mark in Shanghai for the first time in more than two months, along with the end of an absence of new supply after 10 consecutive weeks, the latest market data show.

The total area of new residential properties sold, excluding government-funded affordable housing, jumped 48.4 percent week over week to around 125,000 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, outlying areas continued to act as the dominant force for the market as it regained strength. Jiading District, which saw its transaction volume surge 127.8 percent from the previous week, emerged as the most popular area after selling some 22,000 square meters of new housing. The Nanhui region of the Pudong New Area and Songjiang District came most closely, recording sales of some 14,000 square meters and 13,000 square meters, respectively, during the same period.

"For the first time in 11 weeks, real estate developers finally launched two new projects, a really positive sign for the local housing market," said Lu Wenxi, Centaline's senior researcher. "Besides, one project managed to register weekly sales of more than 100 units, evidence for a major recovery of sentiment among home buyers."

About 43,000 square meters of new homes, including some 41,000 square meters, or 203 units, at one single luxury development in Dongjiadu area of Huangpu District, were released into the local market last week. The average price for the Greenland Dongjiadu project stood at around 138,000 yuan (US$19,422) per square meter.

The average price of a new home, meanwhile, fell 2.9 percent from the previous week to 54,836 yuan per square meter, according to Centaline data.

Citywide, a project in Anting, Jiading District, outperformed all after unloading 10,415 square meters, or 104 units, over the past week for an average price of 31,326 yuan per square meter. A Shui On Land development in Hongkou District bearing an average price tag of 109,379 yuan per square meter trailed immediately after selling 5,574 square meters, or 39 units.

By price point, two developments in the top 10 list stood above the 100,000-yuan-per-square-meter barrier, while six projects cost less than 50,000 yuan per square meter, according to Centaline data.

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