According to data on Shanghai’s housing market last week (11/20-26), around 711 residential buildings were bought and sold. This is a week-on-week increase of 15%. The average price per housing unit dropped 3.3% to ¥50,053.
As the market continues on its downturn, the supply glut of new housing has reached peak levels. As of last week, three new development projects in Songjiang had a total of 437 units or 50,070 sqm of new supply. Of Songjiang’s three projects, only one has over 300 units. The other two have just a couple dozen. However, there are likely many more units outside of this small sample. Since the pace of new supply has slowed, subsequent transactions have improved. However, in terms of sustainability and quantity, current forecasts are not optimistic. This factor is well-illustrated in the price trends for Pudong and Jing’an.
Pudong New Area Apartment Pricing Trend：
The housing price for second-hand homes ticked up 0.23% in November to ¥54,632. It was ¥54,506 last month.
For many consumers, the value of a home in Shanghai’s Pudong area is naturally going to increase as the area undergoes development. Already Pudong has key areas and buildings, including Lujiazui, the Oriental Pearl Tower, the Jinmao Tower, Disney, etc.
Jing’an Apartment Pricing Trend:
Jing’an District’s average second hand housing price came in at ¥67,100 per square meter. This a drop from October’s ¥67,988.
Maxviewrealty’s View： Based on the current trend for home rental prices, it’s likely that, bar some minor fluctuations, the downtown in home sales will positively benefit the Apartment rental market. Current data suggest that the market is currently undergoing a rental cycle. For more home pricing comparisons, please refer back to our website’s database.