Shanghai home prices jump 70%

The sales volume of new residential units in Shanghai, excluding those that are allocated for relocated residents under the urban redevelopment plans, increased 70 percent to 730,000 sq m last month, according to a report released by Shanghai Uwin Real Estate Information Services Co.

Prices of new residential units in Shanghai increased 10 percent to nearly 21,156 yuan psm in August from July, as more mid- to high-end units were acquired.

Meanwhile, nearly 96,000 sq m of new residential units going from more than 30,000 yuan psm were sold last month, hitting a 110 percent increase from the preceding month.

Out of the total new homes sold, about 60 percent have an average size of 90 sq m each, according to research from Uwin.

“Market momentum rebounded in August as some home buyers, who sat on the sidelines waiting for price cuts, finally decided to purchase because the latest tightening measures by the central government did not seem to take full effect yet after being implemented for four months,” said Lu Qilin, an analyst from Uwin.

“On the other hand, an increased supply of mid- to low-end houses during the period also helped boost demand, particularly from end-users,” he said.

Supply of new residential units increased 58 percent from July to 810,000 sq m, and more than half of the new homes were located in the outskirts, like Baoshan, Fengxian and Jiading.