At last housing prices in Shanghai are showing signs of decline, with some luxury apartments in the city center seeing a cut in prices while potential buyers remain uncertain as to the right timing for making a purchase.
Many potential buyers in Shanghai are waiting for a price plunge following the drop in Shenzhen housing prices, which declined by nearly 30% in the first half.
Statistics from China Real Estate Index Academy showed that the housing sales in Shanghai in the first half dropped 27.6% from last year to 8.85 million sq m while housing prices rose a slight 7.26%.
Note carefully those are sales, not prices. Many real estate developers are taking firm stances not to lower the housing price, despite the shrinking sales, which will eat into their profits and are likely to cause corporate capital liquidity problems.
However, market insiders said that the price is expected to fall because of the large supply in the second half.