Prices for luxury housing in Shanghai grow

Sales volumes of luxury residential properties in Shanghai rose significantly in the second quarter of 2013, but this time was not observed obvious growth in property prices.

The number of transactions in the Sector of luxury residential properties in Shanghai in the second quarter of 2013 rose by 39.6% in the second quarter of 2013 and year-on-year growth of 12.6%. These are the data presented in the report by luxury real estate company Knight Frank.

In the second quarter has not been entered for any rules that might affect the market, however, market participants all waiting for more information about other areas of state policy. The recently published “regulations on the housing market” has somewhat limited movement in the market.

Recently held a State Council Executive Meeting made clear that, under the new policy will support credit requirements for buyers of a new home.

In the elite sector of the rental housing in Shanghai experienced a small increase in rental rates in the second quarter, an increase of 0.4%, despite the fact that the market received 210 new apartments with the opening of the residential complex is the Mandarin Oriental .

With the ensuing registration period in international schools, employees of emigrants began to reserve their accommodation for children who enrol in schools that boosted demand in the second quarter , and the number of vacant units of real estate decreased by 0.5 %. To 4.1%.

New instances of luxury homes placed on the market, has reached the level of 280000 square meters, an increase of 4.3% on the previous quarter.

But the volume of transactions in the residential sector of the market has reached the 148,000 square meters.

The price of luxury housing in Shanghai varies in the range from 50,000 RMB per square meter to 70,000 RMB per square meter and continues to grow. Although growth rates fell slightly in the second quarter of 2013, reaching an average cost of about 57165 yuan per square meter for apartments of a class “Lux”.

In the second half of 2013, several new neighborhoods offering luxury apartments will be commissioned and will go into the real estate market of Shanghai. As a result, the pressure on the market due to limited supply subsides a bit. However, however, the expected increase in the number of migrants in the third quarter of 2013, therefore, on residential luxury properties in Shanghai will remain in price and will continue the trend for growth.

® Ellis Morgan 02.09.2013 g.