Shanghai's housing market has continued its upward trend in April, with sales of new and second-hand properties reaching 2.31 million square meters, a 21 percent year-on-year increase, maintaining its strong momentum in May.
In Jing'an District, one of Shanghai's premier commercial and business hubs, a residential property project on Kangding Road has already attracted considerable attention.
Although the project has yet to officially hit the market and unit prices remain unannounced, nearly 150 groups of prospective buyers have shown interest in the first batch of 92 units.
"We should have no problem selling out the first batch. Our clients primarily come from central districts like Jing'an, Huangpu, and Xuhui. Most of them are looking to upgrade or improve their living conditions," said Yu Juan, marketing manager of the property project.
During the five-day May Day holiday, new homes in areas such as Zhangjiang and Yangsi in Pudong located east of the Huangpu River, and the West Bund along the river bank, which have seen rapid development and growing buyer interest, had strong sales figures.
In the first four months of this year, the sales area of new homes in Shanghai increased by five percent year on year.
"In terms of the products available on the market, the focus remains on upgraded residential properties priced above 60,000 yuan (about 8,300 U.S. dollars) per square meter," said Lu Wenxi, real estate analyst of Shanghai Zhongyuan Real Estate Company.
The second-hand housing market also saw significant growth in April, with 20,700 units sold, a 30 percent year-on-year increase, the highest for the same month since 2022. In the first four months of this year, the transaction volume for second-hand homes grew by 45 percent.
"I currently own an apartment that's over 50 square meters. I'm looking for a larger property for better living quality. My current apartment hasn't sold yet, but that's okay since I have the down payment ready. However, if the apartment I'm interested in gets taken before I act, I'll miss out, so I need to move quickly," said home buyer Ms. Chen.
Additionally, new financial policies, including a 0.25 percentage point reduction in the personal housing provident fund loan rate and a policy rate cut starting on May 8, are expected to lower mortgage costs further, providing more support to the housing market.
"With the loan rates going down, including the provident fund loan rate, it will definitely make things easier for my buyers," said home seller Mr. Zhu.
"The rate policies introduced in early May are well-timed. I believe we will see a significant surge in transactions during the traditional peak season in May and June," said Fang Chengqi, chief analyst of real estate industry at Soochow Securities International Brokerage.
Shanghai housing market surges as new, second-hand house sales rise
