Shanghai’s April home sales hit 4-year low

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Published: 8:30am, 3 May 2017Updated: 5:18pm, 3 May 2017

Home transactions continued to decline in Shanghai, China’s financial capital, as government cooling measures take effect and more home buyers take on a wait and see attitude.

The area of new residential properties sold in Shanghai in April dropped 8.8 per cent from March to 677,000 square meters, according to data from Shanghai Centaline Property Consultants. The volume was a 30 per cent slide from the year-earlier period and represented the lowest April figure since 2013.

Average monthly selling price also declined 1.1 per cent from the previous month to 46,900 yuan per square metre.

Lu Wenxi, senior manager of research at Centaline said sales for high-end projects were under greater pressure and the trend will likely persist for another one or two months.

Home sales in Shanghai declined in April as cooling measures take effect. PHOTO: AFP

To curb runaway home prices, the city authorities have been controlling the selling prices of flats and postponing the issue of sales permits for luxury developments since late last year. The minimum down payment requirement for first-time homebuyers was also raised to 35 per cent from 30 per cent.

The tightening policies show no signs of easing. On Monday, a number of major banks in Shanghai have reportedly cut the discounts offered to less than 5 per cent off the benchmark rate, from as much as 10 per cent previously.