Shang­hai house trans­ac­tions de­cline 27% in Dec

China Daily (Canada) - - LIFE - ByWUYIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn

Shang­hai’s pre­owned house trans­ac­tions in De­cem­ber shrank 27 per­cent mon­thon-month to 13,300 units, the low­est in the past 25 months, as a re­sult of a se­ries of mea­sures to cool down the city’s res­i­den­tial prop­erty mar­ket.

A re­search note is­sued by the Shang­hai Ex­ist­ing Prop­erty In­dex Of­fice, which tracks trans­ac­tion data of pre­owned hous­ing prop­er­ties, said that more than 66 per­cent of trans­ac­tions of pre­owned homes were sold below 3 mil­lion yuan ($431,100) per unit, a sig­nal that buy­ers’ de­mand is shift­ing from spec­u­la­tive or in­vest­ment-ori­ented to sel­f­use.

“In terms of av­er­age prices, about 44 per­cent of com­mu­ni­ties with pre­owned house sup­plies saw prices rise slightly around 0.7 per­cent in De­cem­ber, while the other 56 per­cent re­ported prices fall­ing about 1 per­cent, or re­main­ing un­changed,” the re­search note said.

The De­cem­ber data were a nat­u­ral re­sult of align­ment with the over­all trend fol­low­ing a buy­ing spree in the third quar­ter of 2016 when the govern­ment an­nounced a se­ries of tight­en­ing mea­sures to cool down the mar­ket. The city’s res­i­den­tial home sales plunged, as mass mar­ket sales fell 50 per­cent quar­ter-on-quar­ter and high-end house sales down 29 per­cent quar­ter-on-quar­ter in the fourth quar­ter of 2016, ac­cord­ing to data from real es­tate ser­vices provider JLL.

“New sup­ply has fallen sharply, while de­vel­op­ers’ ap­petite for land fades. New sup­ply in the mass mar­ket con­tracted 34 per­cent quar­teras the govern­ment is­sued tight­en­ing mea­sures. In the high-end seg­ment, the quar­ter saw only two projects launch a com­bined 275 new units, rep­re­sent­ing a sharp de­cline of 76 per­cent from the pre­vi­ous quar­ter,” said Zhou Jing, di­rec­tor of the res­i­den­tial prop­erty busi­ness arm of JLL in Shang­hai.

How­ever, up­graders’ de­mand re­mained buoy­ant, pre­vent­ing a steeper de­cline in sales mo­men­tum, with strong sales in newly launched projects.

Home­buy­ers said they feel that sell­ers of pre­owned prop­er­ties are be­com­ing more ra­tio­nal as they are more flex­i­ble and open to price ne­go­ti­a­tions.

How­ever, the av­er­age prices of prop­er­ties in key ar­eas of Shang­hai are still ris­ing, al­beit at a slower pace, and are un­likely to de­cline in the fore­see­able fu­ture.

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