City adds land supply for mid and low-end housing
15/5/2003 14:26
The Shanghai government raised land supply reserved for mid and
low-end housing projects, with nearly 60 percent of the new land in suburban
districts such as Minhang District, Baoshan District, Jiading District, Qingpu
District and Fengxian District in the first quarter of the year, the Jiefang
Daily reported today.
The local real estate market was booming from
January to March this year, with 5.2192 million square meters approved for
presale, an increase of 11.9 percent from a year before.
A total of
6.2135 million square meters of housing units were registered for presale in the
first quarter of the year, increasing by 20.3 percent from a year before, with
the ratio between supply and demand reaching 1:1.19 and the ratio between new
and existing housing reaching 1:0.76.
The local government supplied a
total of 5.6103 million square meters of land for commercial use in the first
quarter of the year, with 90 percent used to construct housing properties, the
areas of which increased by 58.2 percent from a year before.
According to
statistics, mid-end housing priced between 4,000 yuan (US$482) and 7,000 yuan
per square meter has played a major role in local housing sales, accounting for
48.08 percent of the total properties registered for presale in the first
quarter of the year.
SARS has cast a shadow on high-end housing sales,
with only 5.9 percent of pre-sold housing bought by overseas people in the first
three months of the year, down two percentage points from a year before and 9.7
percent from the previous quarter.
As 75.1 percent of pre-sold housing
was bought by local residents, mid and low-end properties are expected to sell
well in the coming future, said an industry analyst.
Shanghai's real
estate market is expected to grow rapidly in the next couple of years, said a
spokesman with the Shanghai Housing and Land Resources
Administration.
The administration will adopt three measures to stabilize
the local real estate market, including building more low-end properties,
raising the supply of mid-end housing by increasing the proportion of properties
constructed between the inner and outer ring roads from the current 40 percent
to 60 percent of total property construction, and stabilizing high-end housing
prices by slowing the pace of downtown reconstruction.
Wendy Zhang/ Shanghai Daily news
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