Home sales jump on Fengxian project

Dec 6, 2016 | Source: Shanghai Daily

FOR the third straight week, new home purchases rebounded in Shanghai but the latest rally might not be sustainable, industry analysts said.

The number of new residential properties sold, excluding government-subsidized affordable housing, rose 9 percent to 151,000 square meters last week, Shanghai Centaline Property Consultants Co said in a report yesterday.

"Though we've seen week-on-week increase in volume for three weeks in a row, the rally would probably not extend further since last week's gain was primarily fueled by one single project," said Lu Wenxi, senior manager of research at Centaline. "Overall momentum remained sluggish following the newest round of tightening policies which have been considered the toughest of its kind ever implemented in the city."

Outlying Fengxian District saw seven-day transaction of new homes hitting nearly 40,000 square meters, boosted mainly by a development where 563 apartments, totaling 37,912 square meters, were sold for an average price of 18,007 yuan (US$2,620) per square meter.

Following the low-end Fengxian project in the top-10 list was a luxury development located near the Shanghai Railway Station in Jing'an District. Forty-seven units, totaling 11,147 square meters in gross floor area space, were sold for 112,799 yuan per square meter on average last week at that project, according to Centaline data.

By price, new homes sold for an average 44,499 yuan per square meter, a week-on-week rise of 7.3 percent.

On the supply side, about 85,000 square meters of new residential properties, most of which had a price around 40,000 yuan per square meter, were launched in the local market, a week-on-week plunge of 37.2 percent.

The new residential property purchase is expected to see a low volume till the end of this month, industry analysts said.

"The latest rein-in policies could prevent half of the potential buyers, most of whom upgraders, from entering the market while home seekers would probably choose to wait a bit longer to see if they can get a better price," Lu said yesterday.

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