Housing prices expected to rise
28/1/2003 14:21
Housing prices in Shanghai are expected to rise this year with a
new round of urban construction boosting market demand, eastday.com reported
today.
Compared with Taipei and Hong Kong, where housing prices are
20,000 yuan (US$2,400) and 30,000 yuan per square meter on average respectively,
Shanghai's housing prices are still relatively low, at 4,000 yuan per square
meter on average.
A batch of housing projects last May in Puxi brought
higher prices, from 6,000-7,000 yuan per square meter to 8,500 yuan, while
projects in Pudong went for from 4,500-5,500 yuan per square meter to
6,500-7,000 yuan.
It will take at least five years for the housing supply
to meet the demand of residents relocating due to urban construction, said an
industry analyst.
Higher land prices will shore up housing prices this
year, the analyst said.
Housing priced below 6,000 yuan per square meter
is very popular, while the excessive supply of premium housing priced more than
10,000 yuan per square meter is getting a cold reception, he
said.
Statistics indicated that up to 4.2 million square meters of villas
are under construction, far exceeding market demand.
More than half of
those buying premium housing in Shanghai are out-of-towners, the analyst said.
Wendy Zhang/ Shanghai Daily news
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