Property prices in the city rose 1.2 percent year-on-year in
June, much lower than the average of 7.1 percent in the nation's 70
large- and medium-sized cities.
But industry analysts said the rate of increase, though small
compared with double-digit jumps in Shenzhen, Beijing and other
cities, was the fifth consecutive monthly rise since housing prices
in Shanghai rebounded in February, indicating a sustained recovery
in one of the world's hottest property markets.
Because of mild increases after a big decline early this year,
"the prices of completed properties, as well as properties in the
construction stage, have now come within investors' scope of
consideration", said Lina Wong, managing director of Colliers
International, a leading international real estate services
firm.
She believes Shanghai's investment climate, as well as its
status as China's financial capital, will continue to attract
foreign and domestic investment to the property sector this
year.
In efforts to rein in speculation in the industry, the local
regulator has said it will enlarge the land supply in the second
half of the year to provide more small apartments.
Latest figures released by the National Development and Reform
Commission indicated that prices for new apartments in Shanghai
climbed 0.9 percent last month, while the growth for pre-owned
apartments was 1.2 percent.
Figures provided by the local real estate industry association
suggested that new apartment prices maintained a steady growth of
0.3 percent between January and June over a year ago.
"Local investors and foreign institutional players remain highly
interested in participating in Shanghai's economic growth, as
long-term property investors continued to support record levels of
investment transactions and valuations that even just a few years
ago would have seemed incomprehensible," Wong said.
"The overall market has demonstrated strong resistance to
impacts from market-curbing measures."
"Luxury apartment sales rebounded in second quarter, ending on a
strong and optimistic note, said Kenny Ho, head of research of
Jones Lang Lasalle's Shanghai office. "Sales for some high-end
properties were recorded as three times higher than last quarter.
With limited new units on the way, luxury prices on the secondary
market will experience more upward pressure."
To alleviate an inadequate land supply, which has pushed up
bidding prices for parcels, the Shanghai Housing and Land Resources
Administration Bureau plans to introduce a total of 10 million
square meters of land for residential use in the second half of
2007.
(China Daily July 25 2007)
