Shanghai housing prices has been set to keep rising, latest analysis suggests

Luxury properties in sought after areas of Shanghai remain in demand despite the introduction of new taxes and other cooling measures, the latest report on the Chinese city’s residential market shows.

According to the report from Knight Frank the average transaction price will continue to grow, boosted by the launch of new projects, but there is some evidence of buyers slowing down as new home sales fell slightly.
The report also says that in the leasing market, influenced by the development of China (Shanghai) Pilot Free Trade Zone, more multinational corporations will be set up in Shanghai and the increase of new expat arrivals will bring about more leasing demand, which will certainly push up the average rent and occupancy rate.
In addition, due to the positive impact of China (Shanghai) Pilot Free Trade Zone and the lack of residential properties within the Zone, surrounding residential projects will face a new round of growth in sales price.

The report shows that the land market remained buoyant in the third quarter of 2013, with 32 residential plots transacted, 15 plots or 88% more than the previous quarter. The active land market is correlated to the positive prospect of developers. ‘Due to the enthusiasm of developers in acquiring land, over half of the transacted land achieved premium rates of over 100%,’ it says.

In the third quarter, luxury home supply surged to 320,000 square meter, up 14.3% quarter on quarter, of which nearly 210,000 square meters was located in downtown, equivalent to the total new downtown supply in the first half of 2013.
But there are signs that some investors and wealthy buyers may be reaching their limit in terms of prices. There were some signs of purchasers’ enthusiasm cooling down as new home sales amounted to 138,000 square meter, down 6.7% quarter on quarter.

Sales of residential properties priced over RMB100,000 per square meter decreased 27% quarter on quarter. Such sales had fallen in July and August but in September, new home sales rebounded quickly to hit their highest level so far in 2013.

The luxury rental market is being influenced by the economic recession in Europe and the United States, the report says. Arrivals of managerial level expats to Shanghai decreased significantly in the third quarter. Leasing demand weakened whilst the occupancy rate fell to 94.1% with a quarter on quarter decrease of 1.8%.

In the third quarter, the occupancy rate of luxury villas in Pudong reached 95.4%, down 1.3% compared with the previous quarter. In addition, due to restricted tenant budget, some luxury serviced apartments faced high vacancy rates, one of the reasons for the increased vacancy rate in the third quarter.
Owing to limited budget and higher living costs in Shanghai, most expats chose to renew leases in the third quarter, though most landlords raised rents slightly. The average rent in the third quarter reached RMB180.1 per square meter per month, an increase of 1.7% quarter on quarter.


During the peak season for international school registration, luxury villa leasing remained active with a 5.4% increase in the average rent in the third quarter.

In the third quarter, the average transaction price fell to RMB56,609 per square meter, a quarter on quarter decrease of 1%.

‘With the slowdown of sales in the riverside area of Lujiazui, the sales of new residential properties priced over RMB100,000 per square meter decreased 27% quarter on quarter, dragging down the average luxury residential price,’ the report says.

‘However, as new home sales picked up in September, buoyed by strong purchasing demand, market prices are expected to maintain on a positive growth trend in the coming 12 months,’ it concludes.

  08-18-2014 | View(456)
China Vanke reports slow pace of profit growth in the first half

CHINA Vanke, the country’s largest property developer by revenue, yesterday posted slower profit growth in the first half of 2014 compared with robust gains in the same period of last year.

Net profits edged up 5.55 percent year on year to 4.81 billion yuan (US$782 million) in the first six months, according to a report on the Shenzhen Stock Exchange website. The growth was sharply down from a 22 percent increase in net profits in the first half of 2013.

However, the Shenzhen-based company seems to have recovered partially from its bleak first quarter. In the January-March period, it posted a 5.23 percent year-on-year decline in profits, its first quarterly profit decline since 2002.

The basic earnings per share rose 6.59 percent year on year to 0.44 yuan.

Vanke said first-half real estate sales across China had cooled from last year but still grew steadily compared with figures in 2012.

Despite a decline in sales on the nationwide market, the company adjusted its strategy and achieved 14.6 percent growth in total building area sold in the first half, as well as a 20.6 percent increase in sales revenue.

Small apartments accounted for as much as 92 percent of the commodity housing it sold in the first six months.

China’s real estate companies have felt the pressure of the cooling property sector in 2014. Beijing Capital Land Ltd saw its total building area sold in the first half rise only 1.1 percent from a year earlier.

The sluggish growth of big-shot developers came alongside a host of disappointing indicators for the market. The growth of real estate investment continued to slow in July, latest data from the National Bureau of Statistics released last week showed.

Over the past few months, an increasing number of cities saw a drop in house prices, in part due to policy loosening on purchasing rules.

Many experts have ruled out the possibility of a “hard landing” for China’s property sector. They predicted the sector would recover in the fourth quarter as banks become more lenient on issuing loans amid sufficient credit supply.

In yesterday’s report, China Vanke noted the government’s fine-tuning on the once-sizzling property market has become more targeted and market-oriented.

  08-18-2014 | View(480)
Wenzhou goverment hold the meeting with 28banks for the support of the real estate

Surging News July 30 learned that morning, the Wenzhou government convened Wenzhou Branch Banking, Branch of People's Bank of Wenzhou, Wenzhou Branch of ICBC and other 28 banks in Wenzhou branch official, held a symposium on the theme "the financial sector to support the real estate industry," the . In the afternoon, the Wenzhou city government office staff told a surging news conference really opened, but to disclose the specific content.

July 29, Wenzhou, Wenzhou Municipal Construction Committee announced the liberalization of the purchase of housing: Housing registration transaction is no longer the verification of existing homes, the outside Wenzhou Wenzhou and new home buyers enjoy the same treatment in a warm and permanent residents. Municipal Construction Committee said: "The financial support of institutions actively seek to implement the first suite loan offers."

Restriction of credit limit increases are two main policies of real estate regulation. May this year, the Ministry of Housing and Urban Policy Research Center researcher Wang Jue Lin in an interview when he said: credit limit influence is far greater than the purchase, the real impact on real estate funds is the big problem. Bank mortgage more lenient policy, the market is fierce little; banks stopped lending, the market basically stopped.

National Bureau of Statistics data for the 70 cities housing sales price display, August 2011 to June of this year, Wenzhou house prices fell by 34 consecutive months. With the increase in supply, Wenzhou commercial destocking pressures continue to increase. To the end of June 2014, the urban area 1,233,400 square meters of commercial housing inventory, inventory to cycle 18 months. Although the purchase of deregulation may stimulate housing demand in the short term, but in the long term, so that people could truly wealthy buyers "save" means the real estate industry.

"Grim situation led some banks tighten real estate loans, mortgage interest rates, although some also increase the purchase of deregulation, but just need people still face difficulty in obtaining loans.", Wenzhou University Real Estate Institute researcher, said in an interview to the ocean surging News Interview: Wenzhou as a third-tier cities, under the years of purchase of the policy, the real estate bubble has been dropped.

In Hangzhou, from July 29, the city fund management center adjustment lending policy: the first suite down 3 percent unchanged, two suites down payment from 70% down to 60%. According to reports, the fund loans policy adjustments applicable to all the main city's average residential property for 70 years.

June this year, the CBRC Vice Chairman Wang Zhaoxing said at a news conference held by the State Council Information Office, said the CBRC will continue to implement differentiated housing loan policy, the support needs of individuals first set of housing, to ensure that low-income groups

  08-02-2014 | View(469)
The movment of the reduce price in Shanghai housing market become active

Vice president , said in a public housing prices , its more than just the need to improve the type of project in March sales was light, and the situation is even worse since April than in March , " the companies are currently in the pipeline how May push plate, is expected to Prior to the high price of real estate in May the price is not reduced by 10% is not started."

The sales staff said that the relatively small amount of real estate apartment listings , developers are not in a hurry to return the funds first , trying to brand started as a proportion of sales below pave the way for a larger house listings . " We had in December last year had one disk, then the price and are now almost more than we did how price increases ."

According to data disclosed developers said Jiading Nanxiang just need to improve the original project April 20 to push the sale of 100 units , after a temporary increase pushed 50 units , 150 units sold out in full , cash 300 million yuan.

Under the property market downturn, Shanghai developers have started to take " action " , including lower down payments and lower prices .

Down 20%

Located in the Jiading Nanxiang just need to improve a project opened on Sunday , in the payment to take a flexible approach rare. According to real estate sales personnel, whether it is the first suite buyers or customers two suites , are only 20% down payment , and then pay 10% within the next three months , the first suite of client need a loan , the remaining 70 % of the mortgage loans arrival time increased from 3 months to a year , "as long as the full amount within a year arrival will do ."

For two suites require loan customers, down 20 percent earlier , then pay 10% within three months after the first payment of the remaining 40% of the mortgage lending before the arrival on the line, and 30% of the banks' mortgage loans arrival time relax to a year .

"We are three- bedroom houses with decoration , the average price 21,000 yuan / square meter , the 20th day of the opening , a few hours in the house more than 160 sold out ." The sales staff said that at present they left real estate apartment listings the last 54 sets , will be launched this weekend , prices remain unchanged , will remain on the payment method using the above approach , "The listings are small, we received fewer chips , many customers did not buy last recognize raise the.

  04-22-2014 | View(514)
Rigid demand in real estate market start to awake

Qingming small holiday after experiencing the opening of the "sleeping " period, Shanghai property market finally in the third week of "wake up" over. According to Shanghai soufun data monitoring center display 4.19-4.20 weekend two days , the city has 10 residential projects opened or push , launched a total of more than 1,400 houses, the supply rose 55.55 percent.

From the apartment , the last weekend ( April 19 -20 days ) only two flagship in the big house , the reputation of goods were flat valley inlets 170-188 3-4 rooms , as well as red Dynamisante Peninsula Lujiazui flat 3 rooms and 95 138 4 room flat . The remaining eight of the main units concentrated in 64-90 1-2 room flat , just need housing full force .

Among them, the Pudong Hangtou Chamtime mansion , shot up to 13 million " discount card ." April 20 to push 105 houses, 88 draws and two main rooms and 115,117 square three rooms, to melt nearly 9 percent. Changtai mansion sales , said: "We have a great opening to the concessions , minus 120,000 2 bedrooms , 3 bedrooms 130,000 discount , discount price down at 1.6-1.7 million / square , the total price is very low, so selling it good."

Among them, 80% of small and medium size , just need to aggressively market the product . Cinda is located in Songjiang New City Blue Buffalo and CITIC Pacific Zhujiajiao Zhujiajiao Town , in one fell swoop launched 326 units and 561 suites source , a change since March just need to drive the market cautious attitude . The Anting , Jiading Lujiazui Central Park and the town of Red River Ti Peninsula , in " Daylight " perfect end. Soufun any micro data monitoring center analyst , said: " April is heading to pick up the property market channel , just need to build off after a pre- listing buffer , began to actively market, in April may just need to reproduce the same period last year to keep pace with the improvement of the situation ."

The new disc market actively build off a good pre-

According to Shanghai soufun data monitoring center statistics, there were two new disc weekend debut . Degree from the go , the overall situation is very good. Located in Songjiang New City Xinda Blue Buffalo for the first time opened up 336 suites source , the same day to 8 percent. About opening day more than 300 groups of customers visiting mainly from Songjiang , Minhang, Xuhui area , age 25-35 years old young couples mainly just need groups . The town is located in the Lujiazui Red River Ti peninsula , with the advantages of a mature sector , precise attract improve customer groups , 28 suites source first launched have been sold.

Chen Ge , general manager of Shanghai Xinda Real Estate in an exclusive interview SouFun , "said Cinda Blue Buffalo and just need to focus on first home buyers need to change people . Early build off a very hot item , customers continue to ask Cinda Blue Buffalo 's first opening time , so hot scene is predictable . "

Just need to play a leading role centralized supply units 64-90 level

  04-21-2014 | View(586)
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