New home sales may have fallen in Shanghai

Country:  China

4 August 2009

An insufficient supply of the new build homes in Shanghai may have caused a 10% month-on-month fall in the number of new build homes sold in the Chinese city in July, bringing to an end five consecutive months of increased sales.

Sales of new homes were predicted to reach 2.02m sqm in July, down from 2.19m sqm in the previous month, according to statistics gathered by E-House (China) Holdings Ltd.

Meanwhile, the average price of new home in Shanghai, excluding those designated for relocated residents under urban redevelopment plans, are expected to appreciate by as much as 20% month-on-month to £1,357sqm, the highest in a year.

“The local housing market has strengthened since February amid a continued rising momentum among home buyers,” said Xue Jianxiong, an analyst with E-House. “However, the supply failed to catch up with demand particularly during the first half of this month as an aftermath of the deadly building collapse in Minhang District last month.”

Between January and July, about 6.73m sqm of new homes were introduced in Shanghai, compared with 7.49m sqm a year earlier.

See Also:   China, Marc Da-Silva, Overseas property investor news, Shanghai