The Shanghai Administration of Statistics and Shanghai Real Estate Association, at a forum in the early part of May, emphasized that real estate developers should not raise prices during the month of May, which usually sees a seasonal uptick in sales.
The event followed an April 9 forum that spoke of stabilizing real estate prices, which have been climbing since March, and the decision of Shanghai’s bank regulator to have commercial banks cap home loans at 60% of the sale price, down from 70%, starting May 1.
Nonetheless, Shanghai developers are raising prices. From May 11 to 17, transaction prices for new residential developments were up 3% week-on-week to the highest level since the beginning of this year, RMB 14,106 per square meter, with some prices soaring as much as 30%.
JLM Pacific Epoch reports that Vanke, China’s largest residential real estate developer, delayed opening two new projects in Shanghai until June because sales have already exceeded the company’s expectations – Vanke’s Shanghai subsidiary achieved its May sales target on May 20. When they are put on the market in June, the price of the new projects is expected to rise 10-15%.