Rebecca Foster | Feb 15, 2013 | Comments 0
In Shanghai, demand from first time property buyers supported sales recovery in 4Q2012
Government imposed tightening measures in Shanghai, including Home Purchase Restrictions (HPRs), remained firmly in place in 4Q2012 according to recent research by Jones Lang LaSalle.
The property management firm expects HPRs to continue into 2013 as sales momentum in the mass market continues while authorities improve affordability for first-time buyers. Sales in the high end sector are expected to remain subdued, as many buyers who are able to afford them will be restricted by HPRs.
Research shows that improving sales momentum in 2Q2012 and 3Q2012 carried through to 4Q, as demand from first time property buyers supported sales recovery. The sales volume of commodity housing in the primary market rose by 25 percent quarter-on-quarter to 3.1 million sqm in 4Q2012, rounding off the year with 9.5 million sqm sold, up 30 percent from 2011.
In the high end sector 4Q2012 registered the purchase of 452 units, up from 433 sold in 3Q, according to Jones Lang LaSalle. The Palace development sold 36 units in 4Q compared to 11 in 3Q, and Shanghai Arch sold 23 units in 4Q compared to 13 in 3Q.
In the leasing market, demand remained stable as multinational corporations continued to deploy expatriates to the city. However, demand for serviced apartments in the centre of Shanghai was reduced by higher take-up of non-serviced apartments with lower rents, according to research. Rents remained flat in 4Q2012 as demand in the sector was steady.
The final quarter of 2012 saw the completion of the Shanghai Bay project in the Xuihui Riverfront area, which added 237 new units onto the market. Fraser Residence in the city's Luwan District re-opened in October, releasing 324 newly renovated units onto the market. New supply in 4Q2012 pushed the overall vacancy rate up to 12.9 percent from 11.3 percent in 3Q2012, reported Jones Lang LaSalle.
Primary sales for high end apartments evened out at approximately RMB67,600 (US$10,841) per sqm in 4Q2012 as few developers offered further discounts to generate sales.
Developers remained active in acquiring land throughout 4Q2012. Future Land Development Holdings spent RMB1.74 billion (US$279 million) on three residential and mixed-use land plots in the Jiading District, and CIFI Group purchased a residential-use plot in the Minhang District.
Filed Under: China • News • News by Country
You may also like:
0 comments:
Post a Comment