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More markdowns on homes

More markdowns on homes

Write: Ardath [2011-06-27]

More markdowns on homes

A man answers his mobile phone in front of a property project in Shanghai. Housing prices in Shanghai have fallen sharply as potential buyers are holding back purchase plans in the hope that they can benefit from a new housing policy to increase supply. [China Daily]

The number of Shanghai residential projects that will offer promotions will climb to 136 in July, mainly due to an increase in supply.

The figure, which covers both apartment and villa developments, represents a 17 percent jump from this month, the country's major real estate website Soufun.com said over the weekend.

"Real estate developers have been quite active in releasing projects recently and the majority have chosen to offer some promotions in order to trigger sales," said Tang Zhengwei, a Soufun analyst. "This naturally puts pressure on other developers to also offer some incentives."

More than 10 residential projects released new units for sale during each of the past two weeks, Soufun data showed.

Citywide, more than 80 percent of the 136 projects are beyond the city's Outer Ring Road. Pudong New Area continued to lead all districts with 29 projects planning to offer promotions next month, according to Soufun.

Developers are also offering different types of promotions these days.

About 93 residential projects, or 68 percent of the total, will offer price discounts. The largest discount for apartments will be 12 percent, both at Picasso Town and Top Living Legend in Pudong. For villas, a 15 percent discount will be offered at Tomson Riviera Garden, also in Pudong.

Other promotions include offering free space, a free parking spot and home decoration subsidies.