Sales of new homes in Shanghai still growing

KUALA LUMPUR: Sales volume of new homes in Shanghai maintained its upward trend for the third straight week in tandem with a growth in supply, as buyer sentiment improved further during the traditional peak season for home purchases that began early this month.

Citing Shanghai Uwin Real Estate Information Services Co, The Shanghai Daily reported on Tuesday, Sept 14 that a total of 256,000 sq m of residential space (excluding those reserved for relocated residents under urban redevelopment plans) were sold in Shanghai between Sept 6 and Sept 12. 

"Sales volume managed to stay above the 200,000 square-meter level for the second straight week and that seemed to be a clearer sign of recovering momentum among buyers," said Uwin researcher Lu Qilin in the report.

Uwin statistics showed that supply of new homes also jumped by 46% from a week earlier to 276,000 sq m, from the weekly average of 214,000 sq m over the past year.

Average prices fell by 11% from a week earlier to 20,011 yuan (RM9,220) psm, ending a three-week streak. A total of 64% of homes were sold at an average of 20,000 yuan psm, up from 56% of homes.

However, prices of new homes in Shanghai may hit their highest this month if the market continues its recovery, underpinned by a continuous growth in sales.

"Housing prices at many residential projects have already been heading northward since this month, and an overall price increase might be possible if buying momentum keeps growing in the following weeks," said China Real Estate Information Corp analyst Sky Xue.