Shanghai Home-Sale Numbers for July Weakest So Far This Year
(Shanghai) — Shanghai in July saw the lowest transaction volume and prices for new-home sales so far this year after several rounds of government cooling measures that targeted the overheated property market.
The volume of new-homes sales nearly halved to 672,000 square meters (7.23 million square feet) in July from a year earlier, according to Shanghai-based real estate agency Centaline Property.
The average sale price also fell to its lowest level this year, to 45,925 yuan ($6,833) per square meter.
July historically is a weak period for property sales as developers often slacken after midyear performance reviews, Centaline analyst Lu Wenxi said.
Lu said hot weather also dampened incentives of potential buyers. In July, temperatures exceeded 37 degrees Celsius (99 degrees Fahrenheit) for 11 consecutive days, the longest unbroken stretch of such heat in 145 years in Shanghai, the official Xinhua News Agency reported.
Homebuyers were also restrained by tightened purchasing rules. In late June, the local government issued guidelines requiring developers to conduct lotteries to determine the order in which buyers could select apartments, an effort to contain speculation.
The city has rolled out similar restrictions since March 2016, including raising down-payment requirements and forbidding commercial properties to be sold as residences.
The policies have weakened demand and reined in home prices. In July, seven of the top 10 deals were reached for less than 30,000 yuan per square meter, Centaline statistics showed.
“If a complex is sold at more than 100,000 yuan per square meter, the housing authorities won’t even issue the presale permit to developers,” a sales manager for a high-end project told Caixin. “Or if the permit is issued, they will order developers to lower the price.”
A presale permit is an important document for property developers, which allows the sale of a project that may or may not have been completed.
Lu from Centaline said that regulations will remain strict, and the market in the second half of the year will be weaker.
Contact reporter Coco Feng (firstname.lastname@example.org)
Feb 28 18:15
Feb 28 16:14
Feb 28 16:10
Feb 28 12:29
Feb 27 19:03
Feb 27 18:55
Feb 27 12:14
Feb 27 06:36
Feb 26 17:49
Feb 26 15:56
Feb 26 11:29
Feb 26 05:10
Feb 26 05:07
Feb 25 18:27
Feb 25 17:52
- 114% of Recovered Covid-19 Patients in Guangdong Tested Positive Again
- 2Another Study Claims Wuhan Seafood Market May Not Be Source of Covid-19 Outbreak
- 3Exclusive: Cluster of Death Found at Wuhan Nursing Home Near Seafood Market
- 4Coronavirus Monday Update: Virus May Gain Ground Again, Experts Warn; Costco Shanghai Urged to Control Traffic
- 5Coronavirus Live Updates | Friday: WHO Declares Coronavirus a ‘Global Level’ Threat; OPEC Mulls Bigger Output Reduction; Fed Considers Rate Cut
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas