New home supply climbing in Shanghai

SHANGHAI: The largest weekend supply of new homes hit the Shanghai residential market since June when 1,950 new homes in at least eight projects were launched on Aug 28 and 29, reported Shanghai Daily.

In comparison, only 444 apartments units were launched the previous weekend, according to Soufun.com, a real estate information portal.

The Shanghai Daily reported that real estate developers are betting on recovering market sentiment in September and October -- considered a high season for home purchases in China -- to boost sales.

Among the new launches were Singapore-based CapitaLand’s The Pinnacle in Pudong New Area and The Pinnacle in Kunshan, Jingsu Province. Collectively, these two projects launched 400 units.

Units at The Pinnacle are priced at between 27,000 yuan (RM 12,471) and 33,000 yuan psm and it is the only project introduced within the city’s Middle Ring Road.

"Developers, particularly with projects in outlying areas of the city, seemed most aggressive in launching their developments because demand from end-users for mid- to low-class houses remained pretty strong despite an overall sluggish buying momentum since mid-April,” said Soufun analyst Lu Yiping in Shanghai Daily.

According to China Real Estate Information Corporation, nine of the 10 best-selling residential projects by area in Shanghai in the week of Aug 22 were transacted below the 20,000 yuan mark.

The market has corrected steeply as the government’s measures to cool China’s overheated residential marker remains unchanged, added Lu.