Commodity property supplies in Shanghai were 1.74 million square meters in the month, slightly less than the 1.81 million square meters in June.
Commodity house supplies rose slightly from 1.29 million square meters in June to 1.29 million square meters.
Analysts said the major reason for the increase in supplies is that some large real estate developers sold new houses at discount prices and cut the prices of already-built houses. But the price reduction strengthened the negative outlook for the domestic real estate market and propelled more potential house buyers to hold money tightly, expecting for lower prices.
Analysts had little comfort to offer. They says as some demands for houses have been met in recent months and larger real estate developers’ price reduction attracted many house buyers from small ones, Shanghai’s real estate market would become even gloomier in August and more real estate developers would have to cut prices.
This situation may turn better in September and October, when the price-performance ratio of some houses would be seen and another round of purchasing power would be accumulated. House sales then will pick up to a certain extent.
Source: Trading Markets