CIFI Holdings (Group), a Shanghai-based property developer that has grown rapidly in recent years, sees great potential in the city and plans to continue with its focus on China’s financial capital.
Shanghai introduced the toughest curbs on homebuyers in March, choking off sales and triggering concerns about prices coming crashing down in the city.
“Transactions have declined, price growth has slowed, but prices will still go up. We are positive about the Shanghai market in the long run,” said CIFI chairman Lin Zhong. “The market is still pretty healthy as the proportion of speculative buyers is low.”
In the year to March, prices of new homes in Shanghai had risen 30 per cent, the fastest growth ever tracked by the National Bureau of Statistics.
To rein in prices, the government has stipulated that the city’s non-local residents must pay social insurance or taxes in Shanghai for at least five years before they can purchase property, rather than the two years stipulated before.
Lin is not worried about the impact from the new policy, saying demand from locals remains buoyant. According to Lin, Shanghai’s average living space per person is relatively low compared with the national average, which is only around 20 square metres.