Worries aroused on high-end properties in Pudong
7/7/2003 14:31
Some renowned high-price housing properties in Pudong District
reported weaker sales this year compared with a year before, despite real estate
developers' optimism towards the Pudong high-end housing market in the future,
the Shanghai Evening Post reported today.
More than 100 housing units are
sold a day in February last year, with 80 percent of a new housing project sold
within ten months, while only 25 units found buyers at the first day of sale in
February this year, according to a local real estate developer.
High-end
housing sales agencies, such as Fancheng, Pacific Rehouse and Zhongyuan have
owned a growing number of luxurious housing units recently, but the trade
volumes declined.
According to a survey, most real estate developers are
optimistic towards the high-end residential property market in Pudong in the
near future, with only a few companies holding a cautious attitude.
The
strong economic growth of Shanghai, great achievements in urban construction and
rapid development in local transportation will bring about a great number of
potential high-end property buyers, said a local real estate developer.
High-end property prices in Pudong are lower compared with those in Hong
Kong, Taiwan and Singapore, and developing luxurious property projects can turn
larger profits for real estate developers and improve their reputation, the
developer said.
The land and construction costs in building a high-end
property reaches less than 70 percent of the total price, with profit of up to
25 percent, said an industry analyst.
Thirty-nine percent of the high-end
property buyers in Pudong are locals, mainly private firm owners, 29 percent are
buyers outside the city, mainly from the neighboring Jiangsu and Zhejiang
provinces, especially from Wenzhou, and 32 percent are expatriates, mainly from
the Southeast Asian nations and those from Hong Kong Special Administrative
Region and Taiwan, according to the survey.
Forty percent of the high-end
properties were purchased for investment, with many leasing out to make profits
after purchase, the survey indicated.
Wendy Zhang/ Shanghai Daily news
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