Shanghai's real estate market is witnessing robust growth, with both pre-owned and newly-built home transactions surging significantly in March.
The pre-owned housing market has been active this year. According to data from the Shanghai Real Estate Trading Center, the cumulative transaction volume of pre-owned homes in Shanghai reached 2.67 million square meters (31,200 units) from January to February, marking a 51 percent year-on-year increase. From March 1 to 20, the turnover amounted to 1.405 million square meters (16,800 units), reflecting a 57- percent rise compared to the same period last year.
According to industry insiders, the sustained positive momentum in Shanghai’s pre-owned housing market has recently led to a noticeable increase in the number of listings and a marked reduction in the transaction cycle.
"Compared to the same period last year, the average transaction cycle for one of our clients was nearly 119 days. More recently, we've observed that this cycle has shortened to under 100 days, indicating that customers are finalizing transactions more quickly than before," said Liao Feng, deputy manager of a housing agency in Shanghai.
In terms of newly built houses, data from the Shanghai Real Estate Trading Center shows that the total transaction volume from January to February reached 780,000 square meters, marking a 28 percent year-on-year increase. Since March, the average daily turnover of new houses for sale has reached 11,000 square meters, reflecting a 34 percent increase compared to the same period last year.
In terms of pricing, the transaction prices of commercial housing have generally shown a rebound. Since the start of the year, Shanghai's newly built housing price index has steadily increased, rising by 0.6 percent in January and 0.2 percent in February. Meanwhile, the pre-owned housing price index has climbed by 1.5 percent since the fourth quarter of last year.
"Especially in March, the number of pre-owned houses we closed deals on over the weekend has consistently remained at a level where the average daily turnover exceeds 1,000 units. With the improvement in leading indicators for pre-owned houses observed in early March, it is anticipated that the market will perform well in the months following the Spring Festival," said Ruan Junqi, deputy director of the Shanghai Real Estate Trading Center.
Shanghai's real estate market sees robust growth in March
