Price rise slows down for new apartments
Shanghai Daily news
The rise in the average price of new apartments in Shanghai is estimated to
slow to 4.9 percent this year to about 6,700 yuan (US$830) per square meter, the
Shanghai Housing and Land Administrative Bureau said.
The rise compares to a
14.6 percent year-on-year jump last year over 2003 as a result of austere
regulatory measures enacted in the first half of this year to rein in
speculation, the bureau said in a report that summarized the city's housing
sector this year.
The report covered houses and budget homes and apartments
selling at below 3,500 yuan per square meter and are offered only to families
relocated by urban reconstruction.
Among the 24.61 million square meters of
new apartments sold in the first 11 months in Shanghai, more than one-third are
budget housing, according to the report.
Apartments bought by investors
living outside Shanghai accounted for 14 percent of the space sold in November,
down from the 28 percent in April as short-term speculation of the market has
been curbed, the bureau said.
Movie stars from Hong Kong, private business
owners from Wenzhou in Zhejiang Province and coal mine owners from Shanxi
Province have snapped up homes in the city last year and drove the housing
prices to a record highs.
In June Shanghai started to levy a high tax on
property transactions in a bid to curb or drive out speculative capital from the
The measures, including a 5.55 percent fee on the total value of an
apartment sold within 24 months of ownership and a doubling of a deed tax, have
hit both new residential units and the second-hand housing market.
said the sales of second-hand houses from January through November totalled
18.53 million square meters, a drop of 23.5 percent from the same period last
Sales of preowned apartments hit 143.8 billion yuan during the period,
a slight 1.2 percent rise over last year.
Meanwhile, the growth in individual
mortgage loans was also held by stagnating real estate transactions and by
borrowers' accelerated payoff of the loans.
The outstanding value of
individual mortgage loans was 270.4 billion yuan as of the end of last month, an
addition of only 23.3 billion yuan from the beginning of this year - 40 billion
yuan less than the same period last year as house buyers wanted to pay back the
money as soon as possible after banks riased interest rates in March.