SHANGHAI'S new housing market continued to suffer weakness despite a mild recovery in sales with medium- to low-end products attracting the majority of buyers.
The area of new residential properties sold, excluding government-subsidized affordable housing, rose 9.1 percent to 150,000 square meters last week, Shanghai Centaline Property Consultants Co said in a report released today.
These new homes sold for an average 43,150 yuan (US$6,359) per square meter, a week-over-week decline of 4.5 percent.
"The rather active transaction recorded in the medium- to low-end segments was mainly buoyed by abundant supply of such products launched during the previous few weeks," said Lu Wenxi, senior manager of research at Centaline. "Only two high-end developments made themselves into the Top 10 list with each of them recording just a few dozens of sales."
On the supply side, only less than 70,000 square meters of new houses were released to the local market last week, a plunge of 78 percent from the previous seven-day period, Centaline data showed. All of them were located beyond the city's Outer Ring Road, with majority of them in Fengxian District and Nanhui of Pudong New Area.
Across the city, a total of 317,200 square meters of new residential properties were sold this month as of July 15, a drop of 23 percent from the second half of June, according to a separate report released today by Shanghai Homelink Real Estate Agency Co.
As the hottest season in a year finally kicked off, the local housing market will probably continue to register very subdued sentiment over the next couple of weeks with no significant rebound expected any time soon, Homelink said.
Sales of new houses won't exceed 700,000 square meters this month, Lu predicted.