Shanghai Luxury Home Sales Increased in Second Quarter
Shanghai luxury home sales have substantially increased in the second quarter of 2013. This increase, which comes in as 39.6 percent higher than the previous quarter and 12.6 percent higher than the previous year, was not, however, accompanied by an increase in values.
The Chinese real estate market has showed increased values in the first quarter of 2013, while cooling measures were put into effect in the residential housing market. The second quarter of 2013, though, has not seen this same trend. Prices have seemed to level off, while sales have significantly increased.
No new regulations were placed on the housing market in the second quarter, although new future policies will help first time buyers.
Residential luxury reached 280,000 square meters in the second quarter to represent a quarterly increase of 4.3 percent, while urban supply figures show an impressive 80,000 square meters for the same period of 2013. 70 percent of Shanghai luxury homes in Shanghai traded between RMB50,000 and RMB70,000 per square meter, which translates to between $800 and $1100 per square foot.
Residential property is still highly sought, especially in highly populated areas, and expected to continue to increase in value in the coming months. Have you seen these trends in your local residential luxury housing market?
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Photo courtesy of Keith Marshall’s Flickr