Shanghai property surges after new move

Shanghai's latest adjustments to home purchase measures triggered a more than 35 percent week-on-week surge in new home transactions, along with a sharp rise in inquiries for pre-owned apartments. Industry experts said on Monday that the response highlights the effectiveness of the new policy and sets the stage for broader market stabilization.

"Following the policy release, visits to some sales offices and brokerage outlets surged, with inquiries doubling, reflecting a boost in market confidence," said Yan Yuejin, research director at the E-House China R&D Institute.

Yan said from the perspective of policy intent and strength, the new measures carry clear positive significance. By easing purchase restrictions and improving housing fund and credit policies, the threshold and cost of buying homes are both lowered, which will effectively stimulate demand.

"The policy has had a clear effect in lifting market sentiment," said Lu Wenxi, an analyst at Centaline Shanghai.

Shanghai's housing market continued its rebound last week, with 113,400 square meters of new homes sold between Aug 25 and 31, up 35.25 percent from the previous week. The rebound in mid to high-end home sales pushed Shanghai's average new home price to 96,901 yuan per square meter last week, up 9.55 percent week-on-week, according to Lu.

Data from Shanghai Lianjia Research Institute showed online activity surged following the new measures. Compared with the previous week, views of pre-owned homes rose 11 percent and new homes 19 percent, while inquiries increased 15 percent for pre-owned and 33 percent for new properties.

"Inquiries at our Jing'an branch surged 20 to 30 percent compared with the period before the new measures were announced," said Huang Ying Chia, a regional manager with Sinyi Realty in Shanghai.

Huang said clients are making decisions at a faster pace.

"One client began looking for an apartment more than a year ago but couldn't decide. Last week, following the new measures, the same client approached us to arrange visits to several flats beyond the Outer Ring Road in Jing'an and Xuhui districts. Another client, who sold a flat in Zhabei district over a week ago, visited three apartments in Jing'an district on Saturday and purchased one of them the same day," Huang added.

To better meet residents' basic and diverse housing needs and to promote the stable and healthy development of the property market, Shanghai rolled out new real estate policy adjustments on Aug 25.

"The housing-friendly measures are helping ease market anxiety. With a range of initiatives, including eased purchase restrictions and improved credit policies, the policies are supportive of both first-time buyers and those upgrading, and their release during the traditional sales season helps stabilize expectations," Lu said.

Under the new policy, all local households and non-local residents who have paid taxes or social insurance in Shanghai for at least one year are now allowed to purchase any number of homes outside the Outer Ring Road. The measures also include easing purchase restrictions, optimizing housing provident fund and credit policies, and adjusting property tax rules.

wang_ying@chinadaily.com.cn