Lux­ury home sales soar in Shang­hai

China Daily (Canada) - - FRONT PAGE - By WANG YING in Shang­hai wang_y­ing@chi­

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

Sav­ills China

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