A bus passes by a residential area on Luban Road in Shanghai. Average price of new homes rebounded to a two-month high in the city last week.
AVERAGE price of new homes rebounded to a two-month high in Shanghai last week amid strong sales of a high-end project in the city's northeastern Yangpu District.
Sales of new homes, excluding those designated for relocated residents under urban redevelopment plans, fell 11 percent to 137,000 square meters between August 2 and 8 while average price jumped 10 percent to 23,242 yuan (US$3,433) per square meter during the seven-day period, Shanghai Uwin Real Estate Information Services Co said yesterday.
"A residential project developed by The Wharf Holdings in New Jiangwan Town registered sales of 62 apartment units last week and that helped drive up the average price again," said Lu Qilin, a Uwin researcher. "That, to some extent, indicated some rallying sentiment among buyers for medium- to high-end residential projects."
The 62 units, all with a gross floor area space of more than 160 square meters, were sold at 43,776 yuan per square meter on average.
However, in the city's luxury residential market, usually referring to houses with a price tag of more than 50,000 yuan per square meter, buying momentum still remained rather sluggish.
A latest research study completed by leading real estate Internet portal Soufun has found that more than half of the city's luxury housing projects recorded zero sales last month.
Out of the total 39 housing projects currently available for purchase across the city, both apartment and villa developments sold above the price barrier of 50,000 yuan per square meter, only 19 managed to secure sales contracts in July.
Among all, two apartment units at The Bound of Bund, a luxury development by China Resources Land, were sold for an average 112,132 yuan per square meter, the highest price recorded last month, according to Soufun statistics.
A total of 69 units of new luxury homes, or 14,467 square meters, were sold in Shanghai in July at an average price of 64,984 yuan per square meter, Uwin statistics showed. That compared to 96 units, or 21,003 square meters, registered in June with an average price of 66,035 yuan per square meter.