Luxury properties in the city center, once considered good investments, have started to see price cuts, showing that Shanghai's real estate market is still in the doldrums, eastday.com reported today.
The high-end 'Yiduyuyuan' project, on Yuyuan Road in Changning District, has recently seen 30 percent price cuts from an average of 25,800 yuan (US$3,197) per square meter to 18,500 yuan.
The project, adjacent to the Zhongshan Park business center, boasts of apartment buildings of six to seven floors and elevators, which are a rarity in the downtown area. In September last year, a total of 181 condos were offered for sale, priced at 25,800 yuan per square meter on average. At that time, a spokesman with the Wuxi-based Yiduo Group, the developer, declared that he believed the project would win market recognition and that there was no need to worry about sales.
However, unexpectedly, only three apartments were sold in September and two in each of October and November. In December, the developer began to contemplate a discount plan and announced the price cuts on December 26, from 25,800 yuan per square meter for pre-decorated units to 18,500 yuan for undecorated ones.
The price reductions have driven up sales, with a total of 12 apartments sold last month, most after the price cuts. Tens of clients have paid 50,000-100,000 yuan in deposits this month to book apartments, said a salesman.