Monday 13 October 2014

Shanghai weekly new home sales hit highest in six months

October 13, 2014, Monday

THE city witnessed a surge in buyers' momentum last week with new home sales hitting the highest in more than six months, latest market data suggest.
The purchases of new residential properties, excluding government-subsidized affordable housing, soared 110 percent week over week to 247,300 square meters during the seven-day period ended Sunday, the highest weekly volume registered since the end of March, Shanghai Uwin Real Estate Information Services Co said in a report released today.
"Due to a latest central government policy to relax mortgage for some home buyers, both supply and sales exceeded the 200,000-square-meter threshold over the past week," said Huang Zhijian, chief analyst at Uwin. "It could be viewed as a major rebound and might be a signal that the market finally started to pick up some strength."
Some 235,400 square meters of new housing were released to the local market, an increase of 48 percent from the previous week, Uwin data showed.
Average cost of the new homes, meanwhile, dropped 11 percent week-over-week to 26,336 yuan (US$4,296) per square meter, a result of structural change.
Citywide, a CITIC residential development in outlying Jiading District became the best-selling project last week after unloading 183 apartments at an average price of 16,509 yuan per square meter, according to Uwin data.
The People's Bank of China announced before the National Day holiday a cut in minimum down payment levels and mortgage rates for some home buyers in one of its biggest moves this year to help a sagging housing market.
Buyers who own a home and had paid off their mortgage will now be considered first-home buyers and can pay as little as a 30-percent down payment. Previously, a buyer of a second home was subject to a minimum 70 percent of the total price.

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