Housing buyers hang back
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The cat and mouse game between home buyers and real estate developers shows no sign of ending, as a "wait-and-see" sentiment prevailed at a Shanghai property fair that ends today.
More than 100 property developers, including major market players such as China Vanke, Poly Real Estate and Gemdale, are taking part in the four-day event held at the Shanghai Exhibition Center - a significant increase in numbers from a similar fair held in March
However, many would-be home buyers remain on the sidelines, unwilling to commit themselves at current prices.
"Most developers are still unwilling to offer major discounts. Minor cuts and insignificant promotions are on offer at only a couple of booths," said Martin Lu, who has been seeking an apartment around the city's Outer Ring Road for more than six months.
"It is apparent that the central government's austerity measures so far haven't worked well to bring down home prices."
While prices seem to be unyielding, an increased number of new projects are being showcased at the May fair.
About 38 new residential developments are making their debut at the event, 80 percent of which are located in Shanghai, according to a latest research released by property website Soufun.com. That compares to just 16 registered in March, said Wen Xi, a Soufun analyst.
"Developers, particularly those who plan to launch projects as early as this month, have come to promote their projects at the fair," said Eric Luo, an analyst with Century 21 China Real Estate, operator of the city's largest estate chain in terms of outlet numbers.
"In participating, they hope to get more first-hand information from the market and, therefore, work out a more appropriate strategy for the upcoming launch of their projects."
Many developers have chosen to stick to their own timetables instead of compromising on prices, despite the current unfavorable market conditions.
"We will probably launch our projects according to our own schedules because the government has made it very clear that tightening measures will remain in place in China for quite a long time," said Vincent Gu, associate director with K.Wah (China) Investment Co Ltd.
"And we believe that residential properties, especially high-end ones, will continue to serve as a safe haven for investors' capital."
The Hong Kong developer is set to launch "The Palace," a luxury apartment project in prime Xuhui District, at the end of June. The project may fetch between 80,000 yuan (US$12,307) to 100,000 yuan per square meter, industry analysts said.
Shanghai Sunville, a villa development in Sheshan, Songjiang District, registered sales of 34 units in a recent week for an average price of 100,205 yuan per square meter. This pushed the city's weekly average price for new homes to an all-time record of nearly 30,000 yuan per square meter, according to Shanghai Uwin Real Estate Information Services Co.
