Housing prices soaring
2/7/2003 14:30
The average housing price in Shanghai reached 5,315 yuan (US$640) in
the first three months of the year, an increase of 12.18 percent from a year
before, with the price expected to rise by 10 percent in the second half of the
year, the Shanghai Morning Post reported today.
A growing number of mid
and high-end housing projects hit the market last month, with an average price
of 6,555 yuan per square meter, up three percent from a month
before.
Growth of land costs is cited as the main reason for the housing
price increase over the past two years, said an industry analyst.
The
land development cost in Shanghai currently accounts for more than half of total
housing prices, with that in the downtown area such as Jing'an and Luwan
districts as high as 8,000 yuan per square meter, driving up property prices,
the analyst said.
According to statistics, 18.2 percent of traded
properties in the first five months of the year were priced at more than 7,000
yuan per square meter, up 6.6 percentage points from a year before.
The
growing market demand for high-priced properties from overseas and out-of-town
buyers has encouraged more real estate developers to focus on high-end housing
projects, boosting overall housing prices on the local market, the analyst
said.
The average property price is expected to increase by ten percent
in the second half of the year, with many low-priced housing projects to hit the
market.
Wendy Zhang/ Shanghai Daily news
|
