In Shanghai the real estate scene has changed since the beginning of 2008 — the number of property transactions has dramatically dropped, prices have soared and investors are turning to second and third tier cities for investment opportunities.
Shanghai´s residential property market appears dormant in some respects, with a plethora of buyers who have adopted a ´wait-and see´ attitude contributing to the decrease in performance since last year.
The decline of real estate transactions in Shanghai has stunted individual mortgage lending.
The latest report from real estate advisers DTZ shows the number of major transactions (each valued at US$10 million or above) plunged dramatically from 17 in the first half of 2007 to eight in the first half of 2008.
According to the DTZ report, serviced apartment transactions in Shanghai accounted for two out of three such transactions in the whole of China.
In the first half of 2008 investment transaction value in the national serviced apartment sector rose from US$138 million to US$416.65 million — an increase of 201.9% year-on-year. At the same time the number of transactions decreased by 40% from the same period the previous year.
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Source: Property Report Asia