The 0.27 percent interest rate hike of two weeks ago hasn't cooled off Shanghai's real estate market, the Wenhui Daily reported today.
Local property prices continue to rise, especially for used homes.
Cheng decided to purchase apartment one week after the rate increase. "The three bedroom and two living room unit that I wanted to buy had soared by more than 70,000 yuan (US$8,434) over the last two weeks, so I decided to purchase it now to avoid further losses," Cheng explained, adding that the bank rate will continue to increase in the near future.
Cheng was not alone.
Many hesitant locals bought properties hurriedly over the past two weeks, said a spokesman with a property agency.
Moreover, investors have also decided to bet on the existing real estate market. A young lady bought 15 serviced apartments without hesitation. Li, a white-collar employee, has two housing units under her name, but still seeks new apartments. "I believe the housing prices will increase further," she said.
After the macro-control policy was digested by the market as of September this year, the local real estate market began to rebound, an industry analyst explained, adding that the fourth quarter of every year is usually the peak period for home purchases.
The impact of the interest rate hike is likely to appear after at least one or two months when the real risks will come, the analyst warned.