Lived-in home transactions in Shanghai hit a four-year high last month after mainland China’s commercial and financial hub relaxed purchase rules in October to nudge its slumbering property market.
However, homeowners were still forced to offer discounts of 5 to 10 per cent to get deals done amid a bearish economic outlook.
A total of 29,711 pre-owned homes changed hands across the city in December, up 9.8 per cent from a month earlier, according to online property consultancy Fangdi.com.cn. It was the highest number since January 2021, when more than 40,000 units found buyers.
“Pent-up housing demand has been released thanks to government incentives,” said Zhu Xinhai, a sales manager with Shanghai-based 5i5j Real Estate Brokerage. “Most buyers remained cautious and would not make purchase decisions unless owners agreed to cut prices by up to 10 per cent.”
Mainland homebuyers are now subject to mortgage rates of 3.5 to 3.9 per cent a year after the rate cut.
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