Shanghai's property market cools down
30/8/2004 9:57
Wendy Zhang/ Shanghai Daily news
Recent property
exhibitions in Shanghai failed to be a hit for home buyers, a sign of the new
slow down in property sales, the Shanghai Morning Post reported today.
With
low-end new homes popular and sales sluggish for mid and high-end second-hand
homes, many real estate developers plan to build apartments instead of villas.
At least five plots of land in the city, previously slated for villas, are now
going to be apartment buildings.
According to statistics, a total of 44 new
property projects hit the local market last month, the largest number this year,
with one-fourth priced at less than 5,000 yuan (US$602) per square meter and
half priced at less than 7,000 yuan per square meter, up eight percentage points
from a year earlier.
According to a survey of 1,000 home purchasers, in the
first half of last year, 50.9 percent of traded second-hand homes were priced at
between 400,000 yuan and 700,000 yuan. Currently, only 35.5 percent of traded
homes are priced at between 700,000 yuan and one million yuan, a range defined
as a mid-market homes.
More home buyers are focusing on the lower end of
market, with the proportion of two-room apartments accounting for 60.6 percent
of the total, said an industry analyst, adding that three-room apartments were
previously a hit in the market.
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