Colliers says high-end housing prices to fall

SHANGHAI: New real estate policies in China have led to weakened investment demand, especially in the high-end residential market, which in turn caused a fall in market prices, said Colliers International.

Among the policies that were recently implemented by the government here include the government’s standardisation of the definition for secondary housing, the strengthening of the property loan covenants and the expectations of a property tax.

In its latest High-End Residential Market report, Collier International said that the impact of the government's tightening policy are slowly emerging in the overall residential market, adding that market sentiment is likely to remain cautious as “lower sales volumes and gradually decreasing prices emerge”.

The report added that these tightening measures have led to decreased volumes of both supply and transactions during the second quarter of 2010.

“However, some high-end residential projects in prime locations continued to record good sales, including Yanlord Town in Pudong. In addition, Tomson Riviera in Lujiazui sold one unit at a new high price of RMB189,000 per sq m (RM 89,601 per sq m),” it added.

Meanwhile, Shanghai Business reported that Henderson Land had just started pre-leasing for the Nanjing East Road 155 Project in Shanghai.

The project, which was officially renamed Henderson Metropolitan, measures 96,000 sq m and comprises a seven-storey retail podium and a 15-storey Grade A office building, as well as a four-storey underground space.

The report added that the retail space has seen more than half of its nett lettable space been leased out, and is scheduled be launched at the end of 2010 or in early 2011.
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