(Yicai) July 2 -- The demand for mid-to-high-end new homes in Shanghai remains strong despite rising prices, with at least five developments selling out on the first day of sales.

The second batch of 48 housing units in the Kangding Yishijiu development in Shanghai’s downtown Jing’an district hit the market on June 28 and sold out in just 12 minutes. The average price fetched was higher than the first 92 units put up for sale at the end of May, which also sold out immediately.

The Shanghai No. 1 Courtyard, a luxury housing development in Huangpu district, began selling its first 124 units on June 27. They sold out within two hours for an average CNY54 million (USD7.5 million), with the most expensive unit fetching CNY187 million (USD26.1 million).

Even in the city’s outer‑ring areas, high-quality projects are in demand. For example, the Runyun Jinmao Mansion development in Putuo district released its second batch of 48 units on June 28, and they were all snapped up within 28 minutes. The average price was higher than those released at the end of May.

“Recent hot‑selling developments fall into two categories: centrally located high‑end residential projects, or projects in outer‑city areas whose build quality has earned strong buyer recognition,” Lu Wenxi, senior analyst at Shanghai Centaline Property, told Yicai.

A project in Pudong district sold out in just two hours after launch on June 27, partially because of its proximity to Zhangjiang Science City, a key hub for Shanghai’s emerging technology industries, Lu explained.

In the second half of the year, better property projects in Shanghai will remain the focus of buyers despite exceptionally high prices, with supply and demand stable overall, Lu noted. As the city government sets fewer price caps at land auctions, new home prices will likely go on rising, he predicted.

Editors: Tang Shihua, Futura Costaglione