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Shanghai home sales shoot up on new incentives but sustainable recovery not in sight
Housing transactions in Shanghai ticked up after local authorities relaxed home purchase restrictions and lowered mortgage rates to underpin the stagnant property market.
But the buying spree may be short-lived due to mounting worries about the economy and job prospects.
“The stimulus policies have effectively inspired some buyers with strong demand to make their purchase decisions,” said Song Yulin, a senior manager with property agency Lianjia in Shanghai. “But it is still a buyer’s market since most owners will have to offer price cuts to get their flats sold.”
According to data from the Shanghai Commission of Housing and Urban-Rural Development, 172,000 sq metres of new homes found buyers in the last week of August, up 7 per cent from a month earlier. The transaction volume also hit a nine-week high.
A total of 3,949 pre-owned flats changed hands in the same week, up 11 per cent from July.
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