SALES of luxury houses in Shanghai fell in the first 10 months of this year, with extremely sluggish transactions in September and October, according to a research released yesterday by Century 21 China Real Estate.

Between January and October, 1,231 units, or 299,800 square meters, of new residential properties priced at more than 50,000 yuan (US$7,899) per square meter were sold across the city, an annual decline of 22.6 percent and 18.5 percent respectively, said the agency, which operates a local network of more than 300 branches.

In September and October, a traditional high season for home sales, only 195 units of luxury homes were traded, a plunge of nearly 65 percent from the same months a year earlier.

These homes were sold at an average 71,300 yuan per square meter during the 10 months, up an annual 5.8 percent, Century 21 data showed.

"Luxury home sales have been declining for three consecutive months in Shanghai since August and in the top-tier market - new houses costing more than 100,000 yuan per square meter - sales almost grounded to a halt in September and October, during which only one deal was sealed each month," said Huang Hetao, a research manager at Century 21.

"As the central government is determined to curb speculation, the overall public expectations for housing prices have somewhat changed, further deepening the sluggish sentiment among home seekers, including affluent buyers."

Overall sales of new homes, excluding affordable housing, totaled 8,728 units, or 1.03 million square meters in Shanghai in September and October, down 62.1 percent and 61.4 percent on an annual basis respectively, Soufun.com, the country's major real estate website, said yesterday.

 

Source:shanghaidaily.com