Home sales remain slow in Shanghai
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New home sales remained sluggish in Shanghai for the third straight month in July as a result of the government's tighter property policies.
Sales of new homes, excluding those designated for relocated residents under urban redevelopment plans, climbed 2.4 percent from June to 430,000 square meters in July, Shanghai Uwin Real Estate Information Services Co said yesterday. That compared with 1.86 million square meters sold in July 2009.
"Buying momentum is yet to rebound since most real estate developers still feel reluctant to offer notable discounts, though housing sales in the city have been slack over the past three months," said Lu Qilin, a Uwin researher.
"The 'wait-and-see' attitude continues to prevail among buyers as home prices remain high in the city while many developers still maintain their hopes that the central government won't take a strict stance toward the industry for too long due to its vital role in the country's strong economic growth."
China has launched several measures since mid-April to cool down the country's overheated housing market. The measures, including increased down payments and mortgage rates on second and third homes, slashed housing sales immediately across the country, particularly in first-tier cities. However, prices have not been significantly cut yet.
In Shanghai, home sales dived to 310,000 square meters in May from 1.02 million square meters in April and then rebounded slowly to 420,000 square meters in June.
Average housing prices, meanwhile, edged up 0.8 percent to 19,313 yuan (US$2,848) per square meter, according to Uwin statistics.
In July, new homes located within the city's Outer Ring Road were sold at an average 31,065 yuan per square meter, Uwin data showed.
On the supply side, a total of 510,000 square meters of new homes were introduced to the local market over the past month, remaining unchanged from June.
A separate survey released yesterday by leading real estate Internet portal Soufun has found that among the city's 250 residential projects currently for sale, about 110 are offering some discounts. That compared with 37 projects in May, 49 in June and 80 in July.
