[photopress:housingShanghai.jpg,full,alignright]In Shanghai new apartment sales dropped 20 percent last month. The reason appears to have been that a pension fund scandal damaged confidence.
Xinhua reported that on September 25, Ministry of Construction officials started an investigation into Shanghai’s property market, meeting with local officials and residents and touring property projects.
Wayne Zane, a director at property consultant Colliers International in Shanghai, said, ‘Instability of the city’s management hurts investors’ confidence in the property market. Property prices will continue to decline as a result of market adjustment.’
Developers sold new apartments totaling one million square meters in Shanghai in October, compared with 1.25 million square meters sold in September. This according to statistics from the Shanghai Real Estate Exchange.
China’s central government is tightening controls on real estate investment and price increases to prevent the world’s fastest-growing major economy from overheating. And it appears to be working — in Shanghai.
The National Development and Reform Commission said in a statement on its Website that residential prices in Shanghai fell 2.3 percent in the three months to September 30. According to the statement Shanghai is the only major city that has reported falling property prices in China.
Source: Shanghai Daily