A report on the sales price changes of commercial real estate in 70 large and medium-sized Chinese cities in November 2020 was released recently by the National Bureau of Statistics.

According to the report, second-hand house transactions in Shanghai hit a new high this year, while new house prices remained stable.

Last month, the supply of new houses in Shanghai dropped sharply to only 160,000 square meters,equivalent to a week’s supply in a normal month.

The second-hand housing market continues to maintain a strong upward momentum. In November this year, the transaction volume of second-hand housing in Shanghai reached 32,000 units, setting a new record for the second-hand housing transaction volume this year.

Lu Wenxi, an analyst from Centaline Property, said that in November the number of cities with decreasing property prices saw a rise, indicating that the momentum for house price increases was weakening and the property market was entering a “winter season”.

In Lu’s opinion, the supply of new houses in Shanghai is expected to return to more normal levels, and the price index of new houses is expected to fluctuate within a narrow range; the second-hand housing market is expected to decline slightly to 30,000 units in December with the house price index likely to maintain a slight increase.