Major real estate agencies in Shanghai reported their business improved in July, with low-end properties taking an ever-increasing share of the overall sales market.
Shanghai Centaline Property Consultants Ltd, the largest estate chain in the city by transaction value, said yesterday that deals involving existing home sales completed at its nearly 300 branches rose 19.5 percent in July from a month earlier as more home buyers entered the market. It said the average transaction price fell 12.2 percent to 21,207 yuan (US$3,293) per square meter amid a growing proportion of cheap houses.
"Months after the implementation of a batch of tightening policies, some home buyers finally decided to stop waiting as housing prices either remained little changed or even climbed a bit despite government efforts since late January that appeared to be successful in damping buying interest," said Wu Yi, a Centaline researcher.
"Notably, however, relatively cheaper residential properties seemed to be more popular these days mainly due to their being more affordable to buyers, many of whom were first-time buyers."
According to Centaline data, existing homes priced below 1 million yuan accounted for nearly 40 percent of the total deals secured at its branches last month, an increase of 18.5 percentage points from June. Meanwhile, those costing between 1 and 2 million yuan shrank by 7.5 percentage points to 37.4 percent.
Shanghai Deovolente Realty Co, which operates about 80 outlets across the city, also told Shanghai Daily yesterday that existing home sales jumped 20 percent in July from a month earlier.
"While we managed to register quite good business last month, it is still too early to say that the local residential market is really picking up," said Lu Qilin, a researcher with Deovolente. "In fact, our estate agents have been working very hard talking clients into deals, many of whom they have been actually tracking for at least a couple of months."
