Property supply exceeds demand, but prices still rising
18/11/2004 17:34
Wendy Zhang/ Shanghai Daily news
The government's macro-adjustment policy seems to have taken effect in
Shanghai's real estate market, with supply slightly outpacing demand, but
housing prices are still increasing, the Youth Post reported today. Property
prices between the city's Inner and Middle Ring Road have seen the largest
increase of 6.37 percent in September, with the average price (excluding
suburban areas) hitting 9,885 yuan (US$1,191) per square meter at the end of
September and expected to top 10,000 yuan by the end of this year. In the
seven suburban districts and counties, including Songjiang, Nanhui, Jiading,
Qingpu, Fengxian, Jinshan and Chongming, prices exceeded 5,000 yuan per square
meter in September. In September, a 10 percent increase brought the total
number of housing units to 25,103 while 3.0536 million square meters were
traded, up nearly 17 percent from a month earlier. While property prices
inside the city Inner Ring Road are unaffordable, those between the Inner and
Middle Ring Road have become top considerations for home buyers, said an
industry analyst. Both the city's unsold housing and leasing rates were low,
at 2.7 percent and 7.2 percent respectively. Those with more than 110 square
meters and located between the Middle and Outer Ring Road had higher unsold
rates, especially for villas.
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