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Wednesday 31 December 2008
In Shanghai, New Home Prices Fall More Than 10% in H2
The average unit price of Shanghai’s new residential properties, excluding those built for relocated residents, fell more than 10 percent in the second half of 2008 as compared to the previous six months, a latest industry report has found.
In Shanghai, New Home Prices Fall More Than 10% in H2
Cao Qian 31 December 2008
The average unit price of Shanghai’s new residential properties, excluding those built for relocated residents, fell more than 10 percent in the second half of 2008 as compared to the previous six months, a latest industry report has found.
The average price of new homes dropped to 1.51 million yuan (US$220,175) per unit across the city, compared to 1.68 million yuan per unit in the January-June period, according to E-House (China) Holdings Ltd.
“The local housing market has suffered extremely low transaction volumes during the second half of 2008, plagued by growing concerns over the economic slowdown both at home and abroad,” said Xue Jianxiong, an analyst with E-House, the largest integrated real estate service provider in the country.
About 33,000 units of new homes have been sold during the second half, a decline of 25 percent from 44,000 units in the first six months, E-House said.
In particular, prices of new homes located within the Inner Ring Road as well as those between the Inner and Middle Ring Road tumbled the most, mainly due to price drops in some high-end properties coupled with slack sales during the period.
The average price for houses within the Inner Ring Road dropped to 3.485 million yuan per unit while those between the Inner and Middle Ring Road dived to 2.332 million yuan per unit, down 19.68 percent and 19.83 percent respectively, as compared to the first half of 2008.
Meanwhile, prices of houses located between the Middle and Outer Ring Road as well as those beyond the Outer Ring Road, have remained more stable as many new developments launched in those areas have offered higher quality, which has helped stabilize the price.
However, industry people predicted that it would be hard for those properties to remain unscathed in 2009 and they would also encounter price drops if homes in downtown areas continued to decline.
The city’s housing market, long plagued by sluggish sales, however, did witness a small recovery in November and December, mainly helped by a series of policies from both the central and local governments.
The transaction volume of second-hand homes jumped 28 percent in Shanghai in December, with the average sale price dipping 2.6 percent to 13,844 yuan per square meter from November, Shanghai Centaline Property Consultants Ltd, operator of the city’s largest real estate brokerage chain, said today.
Among all, used apartments with a price tag of no more than 800,000 yuan were the best sellers, accounting for 32 percent of total deals. Those priced between 1 million and 1.5 million yuan attracted 22 percent of buyers while homes between 1.5 million yuan and 2.2 million yuan accounted for 17 percent.
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In Shanghai, New Home Prices Fall More Than 10% in H2
Cao Qian
31 December 2008
The average unit price of Shanghai’s new residential properties, excluding those built for relocated residents, fell more than 10 percent in the second half of 2008 as compared to the previous six months, a latest industry report has found.
The average price of new homes dropped to 1.51 million yuan (US$220,175) per unit across the city, compared to 1.68 million yuan per unit in the January-June period, according to E-House (China) Holdings Ltd.
“The local housing market has suffered extremely low transaction volumes during the second half of 2008, plagued by growing concerns over the economic slowdown both at home and abroad,” said Xue Jianxiong, an analyst with E-House, the largest integrated real estate service provider in the country.
About 33,000 units of new homes have been sold during the second half, a decline of 25 percent from 44,000 units in the first six months, E-House said.
In particular, prices of new homes located within the Inner Ring Road as well as those between the Inner and Middle Ring Road tumbled the most, mainly due to price drops in some high-end properties coupled with slack sales during the period.
The average price for houses within the Inner Ring Road dropped to 3.485 million yuan per unit while those between the Inner and Middle Ring Road dived to 2.332 million yuan per unit, down 19.68 percent and 19.83 percent respectively, as compared to the first half of 2008.
Meanwhile, prices of houses located between the Middle and Outer Ring Road as well as those beyond the Outer Ring Road, have remained more stable as many new developments launched in those areas have offered higher quality, which has helped stabilize the price.
However, industry people predicted that it would be hard for those properties to remain unscathed in 2009 and they would also encounter price drops if homes in downtown areas continued to decline.
The city’s housing market, long plagued by sluggish sales, however, did witness a small recovery in November and December, mainly helped by a series of policies from both the central and local governments.
The transaction volume of second-hand homes jumped 28 percent in Shanghai in December, with the average sale price dipping 2.6 percent to 13,844 yuan per square meter from November, Shanghai Centaline Property Consultants Ltd, operator of the city’s largest real estate brokerage chain, said today.
Among all, used apartments with a price tag of no more than 800,000 yuan were the best sellers, accounting for 32 percent of total deals. Those priced between 1 million and 1.5 million yuan attracted 22 percent of buyers while homes between 1.5 million yuan and 2.2 million yuan accounted for 17 percent.
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