[photopress:Shanghai_apartments.jpg,full,alignright]Shanghai’s new apartments rebounded last year after dropping drastically in 2005 as slower growth in property prices lured buyers.
Online real-estate consultancy ehomeday.com said in a report that a total of 21.31 million square meters in newly built houses was bought last year, a jump of 20.4% from the year before. The rebound compared with a 41.7% tumble in 2005 when investors postponed purchases of new apartments as the property market showed signs of cooling.
The report said, ‘Developers faced mounting pressures on the capital side and adopted various means to spur sales. That in part caused the rise in trading prices to ease and sparked demand.’
Average trading prices for new houses amounted to RMB8,135 (US$1,047) a square meter in Shanghai last year, up 3.6% from the year before. The jump compared with almost a 10% climb in 2005.
The report said demand was especially strong for apartments between the city’s Inner Ring Road and Outer Ring Road because of their middle-level prices and convenient transport network.
Source: Shanghai Daily