Property investors turn to second-hand house
14/10/2003 14:37
Property investors began to transfer their focus from high-end new housing
projects to mid-end second-hand apartments priced between 500,000 and 800,000
yuan (US$60,000 and US$96,000), a switch expected to bring them larger profits,
the Xinmin Evening Post reported yesterday.
Price increases slowed recently
for high-end housing properties in Shanghai, with the prices of some luxurious
housing projects trending stable.
A growing number of high-end apartments
for rent hit the market, attracting not so many leaseholders as expected. Supply
outpacing demand has lead to the dip of rents, said an industry analyst.
Dim
prospect in investing in high-end properties have made more investors to turn to
mid-end properties, the analyst said.
High-end second-hand apartments changed
hands quickly in the first half of the year, with the trading volumes accounting
for 16.3 percent of the total property tradings at the middle of the year, up
5.3 percentage points from the beginning of the year.
Some investors,
previously sticking to leasing out their luxurious apartments rather than
selling them, began to sell out their properties due to pessimism towards the
high-end housing market in the future.
Lifting of restrictions on overseas
home buyers has encouraged many of them to purchase local properties instead of
leasing them, said the analyst.
Wendy Zhang/ Shanghai Daily news
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