The real estate market of China's megacity Shanghai has continued its strong recovering trend recently,thanks to favorable policies.
From easing restrictions on home purchases to reducing mortgage rates and down payment ratios, real estate policy packages have targeted all levels of the industry.
Data from the Shanghai Municipal Housing Security and Administration Bureau showed that the amount of residential space sold in the city surged by 21 percent year-on-year to over 2.3 million square meters in April.
"There's great confidence in the market in the past two months. In the same period of last year, people usually sold their homes before coming in to look things over. But this year, many of them choose to buy new homes first. They have confidence that they can sell their older homes," said a real estate agent in Shanghai.
According to industry insiders, the focus for many homebuyers have shifted from price to quality.
The revised national standard for residential projects took effect this month, calling for more high-quality homes. Notable policy changes, include raising minimum ceiling height, enhancing sound insulation standards as well as mandatory elevators for new buildings with four or more floors, have improved market sentiment.
"I have been considering buying a more comfortable home for a long time," said a homebuyer.
"We come to buy a four-room-home as our son lives with us. We can afford a new one as we are selling two old ones," said another.
With further expectations for intelligent home systems, eco-friendly designs, and well-rounded facilities, housing experts said there will likely be a new wave of residential property purchases.
"The whole industry is focusing more on being greener and eco-friendly. That will also benefit homebuyers. For example, some home designs emphasize lower energy usage. That means the homeowner will have a lower living cost. And more high-tech appliances are likely to be used in those greener new buildings. If there are more high-quality products in the market, that will definitely boost the demand from purchasers who want to improve their housing condition," said Lu Wenxi, a market analyst at Centaline Property Shanghai.
While the revised standards are mandatory for new construction projects, Lu said he also expects efforts to upgrade existing homes to meet the revised criteria, which could further encourage home purchases and contribute to price stability in the market.
Shanghai real estate market continues strong recovery
