bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Peggy Sito

Despite government moves to cool the sector, a house in the Mandarin Palace will cost up to 66 million yuan

A developer in Shanghai has priced a luxury villa project at 55,000 yuan per square metre - the most expensive residential development in the city.

Developer Shanghai Zendai Property's 50-villa Mandarin Palace in Pudong features homes ranging from 600 square metres to more than 1,200 square metres. The top price for a house will be more than 66 million yuan.

The premium pricing of the project suggests that administrative controls launched by the central government   early this year are failing to curb the rising trend of home prices in the city.

Shanghai Zendai, which is pre-marketing the first batch of 20 houses in Hong Kong and China, said the initial response was encouraging.

The project will not be ready to sell until pre-sale consent has been issued. It is expected later this month.

Chairman Dai Zhikang  said: 'We have [had a] positive response from potential buyers who have committed to buy.'

He said sales had  not been slowed by the central government's macroeconomic controls on the property sector.

China early this year introduced several measures such as tightening credit lending and limiting new land supply to control rising home prices.

In July, the People's Bank of China in Shanghai issued updated guidelines for lending.

These required mortgages of more than 10 million yuan to cover only 40 per cent of the property price, even for first-time homebuyers.

'The measures controlled the supply of land for development. However, as supply is expected to fall, prices of existing luxury properties continue to rise,' Mr Dai said.

His buyers usually paid cash for properties, he said.

However, Centaline China general manager Phinex Wong  Ping-kam said the effects of the controls had gradually become visible in the housing sector with slower transactions, even though prices had not fallen significantly.

'The luxury sector with homes priced at more than 20,000 yuan per square metre was hit hardest,' Mr Wong said.

Developers of luxury projects marketed them as deluxe properties to attract the super rich, who wanted premium properties as a symbol of their status, he said.

'It is a niche market. The project [Mandarin Palace] can attract buyers if the marketing strategy works,' he said.

Zendai appointed Hong Kong architect Rocco Yim to design of the project. Mr Yim also designed One Peking Road, a commercial building in Tsim Sha Tsui.

Mr Wong said  Puxi's Xujiahui district was the prestige luxury area for Shanghai residents.

But the Pudong project would attract interest from buyers outside the city.

The villa development, to be completed in two phases, forms part of the Shui Qing Mu Hua residential project, which includes 852 apartments.



Japan urges Beijing to protect its citizens in China on Nanking massacre anniversary

Parsis in Hong Kong: what’s the secret behind their growing population?

Hong Kong is not the only star of China’s Greater Bay Area. It must adapt or be left behind

From Hong Kong to Finland and beyond, the young are taking charge of their future

Treaty of Nanking

Villa project sets record asking price in Shanghai