New home sales fell by double digits in Shanghai last week despite a surge in supply, latest market data showed.
The area of new homes sold, excluding government-subsidized affordable housing, dropped 16.8 percent to 68,000 square meters during the seven-day period ending on Sunday, staying below the 100,000-square-meter threshold for the third straight week, Shanghai Centaline Property Consultants Co said in a report released yesterday.
The city's outlying Qingpu District kept its No.1 position for the second week, though transactions plunged 42 percent to around 14,000 square meters. It was followed by Minhang and Jiading districts, where new home sales both failed to reach 10,000 square meters.
"What seemed to be a surprise was that new home supply hit a 28-month high last week but the beginning of the year is usually a low season for the property market," said Lu Wenxi, senior manager of research at Shanghai Centaline. "As the majority of new homes released into the market asked for no more than 50,000 yuan per square meter, we could probably expect a major rebound before the lunar new year holiday, which will fall around mid February."
A total of 231,000 square meters of new homes spanning six projects were released in the city last week, a week-over-week jump of 168.8 percent, Centaline data showed.
A housing development in remote Nanqiao, Fengxian District, launched in one batch some 86,000 square meters, or 836 units, of new homes.
The average cost of new homes was nearly flat at 49,190 yuan (,671) per square meter, according to Centaline data.
A project in Qingpu was still the city's most sought-after for the second week after selling 7,302 square meters, or 76 units, for an average of 38,824 yuan per square meter.