More compact housing to hit the market
5/6/2003 14:28
A great number of mid and low-end housing properties are under
construction outside Shanghai's inner-ring-road, with more compact models
between 80 and 110 square meters expected to hit the market, the Jiefang Daily
reported today.
One-hundred-square-meter units with two bedrooms and one
living room have become the hot property for local home buyers.
However,
property developers are currently inclined to construct large housing units,
with two-bedroom units usually having an area of 100-110 square meters and
three-bedroom units having an area of 130-140 square meters.
Housing
prices in downtown areas such as Xuhui District and Jing'an District are rising
rapidly, so locals usually have to pay more than one million yuan (US$120,000)
for a housing unit with three bedrooms and one living room, said an industry
analyst.
Large housing units yield higher profits for property developers
compared with compact models, so developers are reluctant to build compact
properties in downtown areas, the analyst said.
However, salary-earners
are still the main consumers in the local real estate market, so property
developers should build more compact housing units to meet demand, he
said.
Large housing units are in oversupply, so investing in such
projects is risky, he added.
Wendy Zhang/ Shanghai Daily news
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