Luxury home sales soar in Shanghai
In the first six months of 2015, Shanghai’s luxury property market observed a 155 percent surge in sales from a year ago, with the half-year transaction volumes exceeding 820,000 square meters, spurred by investment and the rising demand for better living conditions, according to experts.
A total of 820,000 square meters of high-end residential properties were traded at an average price of 70,144 yuan ($ 11,293) per sq m, representing a year-on-year rise of 7 percent. There were 4,429 brand new premium apartments — each carrying a price tag above 50,000 yuan per sq m — traded in Shanghai from January to June, according to Deovolente Realty Co Ltd.
Trading of luxury homes had started to pick up since the end of last year and it peaked during the second quarter of this year. In June alone, a record 1,398 high-end apartments were sold.
Another report from E-House (China) Holdings Ltd revealed that the growth of luxury apartment sales in major cities around China has been equally robust, with 2,685 units sold in the second quarter, representing a 444 percent year-on-year surge and an increase of 167 percent from the earlier quarter.
More than half of the 79 most expensive residential properties traded during the second quarter across the nation are located in Shanghai, and top of the list was the Tomson Riviera — a luxury property project located in Shanghai’s financial center of Lujiazui — which commands a rate of 194,000 yuan per sq m.
In Shanghai’s secondary market, as many as 21 luxury home units, each priced above 50 million yuan, changed hands from January to May. In 2014, only 20 such properties were traded throughout the whole year, according to data by Deovolente Realty.
Among those priced above 60,000 yuan per sq m and 10 million yuan in total, 448 units were sold, up 114.4 percent yearon-year, the highest in history, according to Shanghai Centaline Property Consultants.
Xie Jinlong, a researcher from E-House (China), said that various factors have contributed to the buying spree, such as lowered requirements for mortgage, supportive measures by the government and investment needs.
“The outstanding sales in the second quarter may not