Apartment prices in Shanghai have fallen by 7.8 percent from
last month as the supply of residential properties exceeded the
demand for the first time since June this year, with a ratio of one
unit on sale to 0.99 units wanted, the Shanghai Morning Post
reported today.
The average price for apartments fell to 10,266 yuan (US$1368.8)
a square meter in the second week of October, the report said,
citing the E-House China Institute.
The new supply of properties, including apartments, offices and
garages, in the past week hit 785,900 square meters, 232.4 percent
higher than the previous week, said the E-House China Institute
affiliated with the property developer E-House Co.
Analysts attributed the trend to recent policies, such as
raising minimum down payments for second home buyers and forcing
developers to sell completed projects as soon as possible.
These policies will further boost the supply in the rest of this
month, analysts added.
Shanghai's supply of residential properties dropped below six
million square meters on October 9, its lowest level since the
second half of 2005.
(Shanghai Daily October 17, 2007)
