Sentiment among both home buyers and real estate developers remained sluggish in March despite month-over-month recoveries, latest data showed.
The area of new residential properties sold, excluding government-subsidized affordable housing, jumped 104.5 percent from February to 742,400 square meters last month, Shanghai Homelink Real Estate Agency Co said in a report.
That, however, represented a drop of 66.5 percent from same period a year ago and was also the lowest March figure in five years, according to Homelink data.
On the supply side, only 12 residential projects totaling 361,000 square meters were released to the local market last month, an increase of 26.1 percent from February and a year-on-year decline of 58.5 percent.
“Last month's rebound in sales and supply was mainly due to seasonal factors while overall market sentiment continued to be very slack as tightening policies remained strictly in place,” said Zhao Baogen,a Homelink researcher. “We are not supposed to see major improvement until there is a notable recovery in new home supply.”
Across the city, an apartment project in outlying Jiading District was the most popular development in March after selling 710 units at an average price of 31,210 yuan (,521) per square meter. No other residential projects in the city managed to unload 200 units or above during the same period.