SALES of new homes last week tumbled from a three-month high while the average price hit a seven-week low, according to latest data.
The area of new homes sold, excluding government-subsidized affordable housing, plunged 37.1 percent from the previous seven-day period to 248,900 square meters, the lowest weekly volume registered in four weeks, Shanghai Homelink Real Estate Agency Co said in a report yesterday.
“The market’s withdrawal appeared quite normal after strengthening for three straight weeks,” said Lu Qilin, director of research at Homelink. “Meanwhile, July and August are a traditional low season for property sales because of the hot weather, and the beginning of a month is often a slack period compared with the end of a month.”
The report said home buyers in suburban districts such as Fengxian and Jiading were the most positive. Around 34,000 square meters of new houses were sold in Fengxian while Jiading saw sales of some 32,000 square meters.
The average cost of new homes, meanwhile, also fell amid lackluster sales of medium to high-end properties. The new homes were sold for an average of 34,678 yuan (US$5,184) per square meter, a weekly decline of 9.2 percent, according to Homelink data.
“The weekly fall was mainly due to a structural shift with eight of the 10 best-selling projects sold for less than 30,000 yuan per square meter on average,” Lu added.
Meanwhile, just 110 new high-end homes priced at 80,000 yuan per square meter and above each were sold citywide last week, a sharp drop of 136 units from the previous seven-day period.
Supply fell as sentiment among real estate developers continued to weaken for the third straight week. About 111,500 square meters of new homes were released, a week-on-week drop of 43.1 percent, Homelink data showed.
“We don’t expect new home supply to see a major rebound until September and October, which are the best season for property sales in the year,” said Lu Wenxi, a senior manager of research at Shanghai Centaline Property Consultants Co.