More property supplies expected
1/6/2004 14:47
Local housing supplies are expected to exceed market demand in the near
future, the Shanghai Morning Post reported today.
Currently, the local market
demand slightly exceeds the property supply. However, the situation will change
soon.
Shanghai is considering reducing the requirements for pre-selling
ordinary properties, with relevant surveys completed by the end of last month,
said Pang Yuan, vice director with the Shanghai Housing and Land Resources
Administrative Bureau.
According to the existing requirements for projects
of no more than seven storeys, issued in 2000, groundwork construction must be
complete and the main body construction and roof sealing must be finished; For
projects of eight or more storeys, groundwork construction must be complete and
two-thirds of main body construction (no less than seven storeys) must be
finished.
If the new policy is acted upon, a total of five million square
meters of properties are expected to hit the market ahead of schedule.
Lowering the requirements for pre-selling ordinary properties aims to
increase the housing supplies in Shanghai, with around five million square
meters of such properties expected to hit the market ahead of schedule, Pang
said, adding that much tougher competition occurs after the supplies
soar.
More than 16 million square meters of ordinary properties will be
offered to the market this year, and the city will continue to put a lid on the
total number of residents relocated in the city center.
Beside the three
million square meters of properties slated for residents relocated for urban
construction to hit the market this year, construction on another 3.5 million
square meters will start.
Wendy Zhang/ Shanghai Daily news
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