Sentiment among new home buyers eased in Shanghai last week despite a jump in new supply, the latest market data showed.
The area of new residential properties sold, excluding government-subsidized affordable housing, fell 13.1 percent to around 145,000 square meters in the seven days to Sunday, Shanghai Centaline Property Consultants Co said in its regular Monday report.
Across the city, six districts managed to register more than 10,000 square meters in weekly transaction volume, providing support for overall stability of the market. Outlying Qingpu, which had been the most sought-after area in the past few weeks, saw its sales plunge 34.1 percent to around 26,000 square meters. In Pudong New Area, new housing sales dived 38.1 percent to some 13,000 square meters whilst in Fengxian and Songjiang, they both stayed above the 15,000-square-meter mark.
Citywide, new homes sold for an average of 54,463 yuan (US$7,880) per square meter, a week-on-week decrease of 6.3 percent.
"Eight of the top 10 projects in terms of transaction area cost more than 50,000 yuan per square meter with one of them selling for above 110,000 yuan per square meter," said Lu Wenxi, Centaline's senior research manager. "However, none managed to register seven-day sales of more than 100 units, evidence for a retreat in momentum."
A residential project in western Qingpu with a price tag of 56,361 yuan per square meter sold 9,721 square meters, or 85 units, for an average 56,361 yuan per square meter, outperforming all counterparts. It was immediately trailed by a development in Fengxian, which unloaded 8,046 square meters, or 97 apartments, for an average price of 22,884 yuan per square meter, according to Centaline data.
On the supply side, about 194,000 square meters of new housing in five projects were released into the market, 65.7 percent more than last week, Centaline said.
In the coming weeks, new home sales in Shanghai will probably hover between 150,000 square meters and 200,000 square meters, Centaline predicted, citing fluctuations in new supply over the last few weeks.
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