Used property trading booming
16/6/2004 14:48
A total of 10.68 million square meters of used properties were traded
in the first five months of the year, nearly double the amount of new home
trading, according to the Shanghai Real Estate Trading Center, the Youth Post
reported yesterday.
The city's used housing index increased to 1,336 points
last month, up 17 points, or 1.2 percent, from a month earlier.
The
flourishing of the used home market indicates that the government measures to
control the overheated real estate market are effective, said an industry
analyst.
The suspension of trading in uncompleted properties has curbed
speculation and pushed many investors to turn to the existing-home market, the
analyst said, adding that unfinished housing trading previously accounted for 40
percent of the total used-property trading.
Many investors sold their
unfinished properties before the government policy was issued, driving up the
trading, the analyst pointed out.
In the coming five years, properties no
more than five years old and with good inner structures and outside environment
are expected to be a big hit in the market, with 20 million square meters of
such properties available in the market, the analyst said.
In foreign
countries, prices for this type of housing are usually higher than those of the
equivalent uncompleted properties, and the same situation will also occur in
Shanghai where a growing number of residents are preparing to purchase homes, he
added.
The volume of used-home trading inside the city's Inner Ring Road was
relatively small last month, despite the fact that the prices are still on the
rise; sales of those near the Middle Ring Road were increasing with rising
prices; trading in used homes between the city's Middle and Outer Ring Road had
great potential.
Wendy Zhang/ Shanghai Daily news
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