NEW home sales in Shanghai declined last week on continued lackluster sentiment as the Spring Festival approaches, according to latest market data.
The purchases of new homes, excluding government-subsidized affordable housing, fell 7.4 percent from the previous seven-day period to 151,000 square meters last week, the lowest in 15 weeks, Shanghai Deovolente Realty Co said in a report released yesterday.
“With the Spring Festival about a one month away, sentiment among home seekers and real estate developers continued to cool,” said Lu Qilin, a Deovolente researcher.
“We don’t foresee any major rebound until the end of the weeklong Spring Festival holiday.”
The supply of new homes last week plunged 61.4 percent week on week as only 64,800 square meters were released to the local market, according to Deovolente data.
New homes sold last week rose 16.5 percent to 31,244 yuan (US$5,026) per square meter on average, thanks to robust sales at an upscale project in Longhua, Xuhui District.
Meanwhile, a development in outlying Songjiang District became the most popular after 47 apartments were sold last week at an average price of just 21,000 yuan per square meter.
As of Sunday, 380,000 square meters of new homes were sold in January, or a daily average of around 21,100 square meters, a separate report released by Shanghai Uwin Real Estate Information Services Co said.
Huang Zhijian, chief analyst at Uwin, suggested developers keep their current prices as inventory was at historic high.