[photopress:Shnaghai_real_estate_1.jpg,full,alignright]The real estate market is overheated. Various attempts have been made to cool it down. Now
This most recent move should be seen as part, but only part, of the austerity measures intended to cool the overheated property market and expect it to spread to other areas of
The sale of properties in Luwan, Huangpu, Xuhui and Jingan districts in
The market believes the measures will be extended to other areas of
An analyst at a
Perhaps. But profit margins will be squeezed due to higher transaction costs and developers will find the profitability of their developments cut by a serious market.
Developers such as Shui On Land must expect a serious effect. The analyst explained, ‘Shui On has a large exposure to
One possibility mooted by some property agents is that sellers will raise their asking price to maintain their profit margin, which in turn will boost overall market prices. For that to happen there has to be a large group of buyers willing to absorb the extra cost. This, as matters stands, seems unlikely.
Another analyst said the long-term outlook is still positive. The share prices of property stocks and the volume of property transactions will very probably fall in the short term. However, housing demand in
According to figures from the National Development and Reform Commission average new property prices in
Source: The Standard