New home sales rise as impact of curbs decreases

SHANGHAI: The momentum of home buying has continued to rebound in Shanghai last week amidst diminishing effects from the central government's tightening policies.

ShanghaiDaily.com reported that sales of new homes -- excluding those designated for relocated residents under urban redevelopment plans -- jumped 39% from a week earlier to 242,000 sq m, which is the highest weekly volume registered since mid-April when the central government made a series of tightening moves to curb housing speculation.

Citing Shanghai Uwin Real Estate Information Services Co, the news portal reported that the average price climbed 5% to 22,366 yuan (RM10,313) psm, the third straight weekly gain.

A Uwin researcher, Lu Qilin said that the fast-recovering volumes in the mid- to low-end market and also the high-end sector, are posing increasing pressure on average housing prices.

“If home prices continue to rise, it could be possible that further restrictive measures will be launched,” Lu said.

Uwin’s statistics showed that 15% of new houses sold in Shanghai are priced above 30,000 yuan psm, compared to 10% recorded a month earlier. The supply of new homes in the market dropped 59% to 189,000 sq m during last week from a week ago.

Meanwhile, sentiment is also improving in the city's existing housing market. A report released by Century 21 China Real Estate -- an operator of the city's second-largest real estate chain -- said that about 12,500 units of existing properties, mainly houses, were traded across the city in August, a surge of 58% from July.

It added that the average price edged up 0.6% monthly to 17,100 yuan psm.