(Yicai Global) Aug. 3 -- The transaction volume of new commercial residential housing in Shanghai reached a new high in a single month in the year last month even though July is usually the doldrums for real estate transactions.
The number of new commercial residential housing deals in Shanghai reached 6,200 units last month, surpassing May's 4,600 units to crest a new peak for a single month thus far this year, Shanghai Observer reported.
One reason for the buying spree is that new projects debuting were mostly stickered at between CNY30,000 and CNY60,000 per square meter, with relatively good locations, which loosened buyers' purse strings, Centaline real estate analyst Lu Wenxi noted. Another factor is that the supply of new homes continued to fall from May to June, so the large lineup of new homes spilling onto the market in July propelled a jump in trading volume.
New commercial residential housing is selling like hotcakes, but the second-hand market is flaccid by comparison. Used housing prices have continued to slide in the city for seven consecutive months -- falling by between 10 percent and 20 percent, one realtor said -- while the overall pool of such housing on sale has also greatly shrunk.
Editor: Ben Armour