New Homes Sold Rise 43.5% on Price Cuts


SIGNIFICANT price cuts offered by real estate developers propelled purchases of new homes in Shanghai last week to surge to the highest in about seven months, according to market data released yesterday.

The sales of new homes, excluding government-funded affordable housing, rose 43.5 percent from the previous week to 201,500 square meters, extending a rally for the fifth straight week, Shanghai Deovolente Realty Co said in a report.

They were sold for 20,486 yuan (US$3,246) per square meter on average, a rise of 5.1 percent from the week earlier.

"More real estate developers have cut prices to boost sales, which may explain a steady recovery in buying sentiment among home seekers since the end of the Spring Festival holiday," said Lu Qilin, a researcher at Deovolente.

"Moreover, the city's revised criteria for 'normal' homes and lower mortgage rates for first-time homebuyers also helped in the rebound."

A Poly Real Estate project in Baoshan District sold 257 apartments last week after a price discount of 20 percent.

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