New home sales rebounded in Shanghai last week amid recovering supply with medium to low-end projects continuing to be the most sought-after type, market data showed yesterday.
The area of new homes sold, excluding government-subsidized affordable housing, rose 14.6 percent from a week earlier to 107,000 square meters, Shanghai Centaline Property Consultants Co said.
The city's outlying Jiading District saw the largest volume — about 21,000 square meters, a week-on-week surge of 62 percent. It was followed by Qingpu District.
New homes sold for about 46,659 yuan (,048) a square meter, a week-on-week rise of 5.7 percent, Centaline said.
"Medium and low-end developments continued to dominate the sales market with seven out of the 10 best-selling projects priced at no more than 35,000 yuan per square meter," said Lu Wenxi, senior manager of research at Centaline.
"However, the most popular project still failed to register weekly sales of more than 100 units, evidence of continued lackluster momentum among home buyers."
A residential project in Lingang area sold 89 apartments, the most among its counterparts, for an average 24,516 yuan per square meter last week. It was trailed by a project in Baoshan, where 44 units were sold for an average 53,392 yuan a square meter.
About 150,000 square meters of new homes were released locally, sharply up from zero a week earlier.
"As supply rebounds, sales of new homes may possibly climb as well in the last week of this month," Lu said. "But overall performance in September has definitely failed to meet market expectations mainly because of the extremely inadequate supply."
As of Sunday, only 215,000 square meters of new homes had been launched for sale, down from 400,000 square meters in the same period a year ago, Centaline said.