Market sentiment among home buyers continued to rebound along with a long-awaited recovery in supply, market data showed yesterday.
The area of new residential properties sold, excluding government-subsidized affordable housing, climbed 6.1 percent to 138,000 square meters last week, extending strength for the second straight week, Shanghai Centaline Property Consultants Co said in a report.
"Despite a very mild rebound in transaction, it could be seen as a positive sign that there is some market momentum," said Lu Wenxi, manager of research at Centaline. "A notable surge in new home supply should possibly help the weekly transaction volume to stay above the 100,000 square meters threshold for another week."
Citywide, new home supply surged from zero a week earlier to more than 135,000 square meters, which was a six-week high. More than 60,000 square meters were in the medium to low-end category.
On the price side, new homes sold for an average 41,485 yuan (US,008) per square meter, a week-on-week plunge of 23.1 percent, which was due to a structural shift.
Strong sales of low-end projects in outlying areas helped drag back the average price. A residential development in Lingang New City, a port area in Shanghai, sold 224 apartments alone last week for an average cost of 14,802 yuan per square meter, making it the most popular project of the week. It was followed immediately by a project in suburban Songjiang District, which sold 108 apartments for an average cost of 33,485 yuan per square meter.
"Two residential projects managed to register seven-day sales of more than 100 units and that seemed to me another important sign for a generally recovered mood among home buyers," Lu said.