New home prices set to soar
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Market watchers expect new home prices in Shanghai to continue to surge and may even set a new record after they jumped significantly last week as developers are expected to release more units into the market.
The average prices of new homes, excluding those for relocated residents under urban redevelopment plans, soared 20 percent to 22,237 yuan (US$3,255) per square meter between April 5 and 11, compared to the city's historic high of 22,270 yuan per square meter set around the end of last year, according to China Real Estate Information Corp (CRIC), a property information, consulting and online services firm.
"While Seasons Villas and Yanlord Town in Huamu, Pudong, continued to lead others last week in the high-end category, more developers of luxury residential products are joining the competition in the coming weeks," said Sky Xue, an analyst at CRIC. "Therefore, I expect the 22,270 yuan weekly record to be surpassed very soon as market momentum continues to be strong."
For instance, 11 Rose Garden villas in Minhang District, a top-tier development by Greentown China, costing 80,000 yuan per square meter are scheduled to be launched over the weekend. More than 100 units at Dynasty on the Bund, a luxury apartment project along the west bank of the Huangpu River in prime Luwan District developed by Hong Kong's Guilherme Holdings, will also be released later this month, with units priced at an average 70,000 yuan per square meter.
Also due to be launched are a low-density residential development in Maqiao in Minhang District, developed by Hutchison Whampoa, and the last batch of Shui On's Lakeville apartments in Xintiandi.
An anticipated "reasonably abundant" bank liquidity in 2010 and an optimistic market outlook will help underpin interest in high-end residential properties in Shanghai and support prices, said Lina Wong, managing director for East and Southwest China operations at Colliers International.
