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A general view shows buildings in the center of Shanghai. Sales
of new homes plunged 56 percent to 3.57 million square meters in the city during
the first half of this year as government policies launched since mid-April to
curb housing speculation have damped buying sentiment.
Sales of new homes plunged 56 percent to 3.57 million square meters in
Shanghai during the first half of this year as government policies launched
since mid-April to curb housing speculation have damped buying sentiment.
The six-month volume, excluding those designated for relocated residents
under urban redevelopment plans, was the lowest registered over the past five
years, according to Shanghai Uwin Real Estate Information Services Co, which
started to track the local new home market since 2006.
"The latest tightening measures are definitely the toughest of its kind ever
introduced by the central government and they slashed home sales," said Lu
Qilin, a researcher at Uwin. "However, the average price continued to be above
20,000 yuan (US$2,950) per square meter during the six-month period as
large-scale price discounts (by developers) have not started."
Between January and June, new homes in Shanghai were sold at an average
21,008 yuan per square meter, compared with 14,198 yuan per square meter in the
same period a year earlier, Uwin statistics showed.
In mid-April, the central government raised the down-payment requirement on
second-home mortgages to at least 50 percent from 40 percent. The State Council,
China's Cabinet, issued a notice directing banks to suspend loans to those
buying third and more homes to rein in speculators.
In its latest effort early last month, Chinese authorities said banks should
consider both the creditworthiness and home purchase records of people applying
for mortgages. It was the first time home buying records were included among the
lending criteria.
New home sales might improve in the second half as more real estate
developers, who have been suffering very sluggish sales over the past two and a
half months, may finally decide to offer price discounts to replenish capital,
analysts said.
In June, new home sales surged 35 percent to 420,000 square meters after
hitting a low of 310,000 square meters in May, according to
Uwin. |
