Shanghai housing market’s downwards trend to continue amid low demand and expectations of further price declines, brokers say
- Owners selling homes will have to offer discounts of 5 to 10 per cent to make sales: brokers
- ‘Most customers are just taking a wait-and-see approach,’ sales manager at property agency 5I5J says
Shanghai’s housing market looks set to continue its downward slide due to a lack of buying interest, as would-be buyers wary of a gloomy economic outlook continue to feel uneasy about the current high property prices.
“Most customers are just taking a wait-and-see approach,” said Shi Jinbo, a sales manager with property agency 5I5J. “No recovery is in sight, although the central and municipal governments have rolled out incentives to spur home purchases.”
A total of 6,596 pre-owned flats changed hands last month, down 46 per cent from January. The transacted prices stood at 59,030 yuan per square metre, down 1 per cent month on month.
These lacklustre numbers came despite Beijing and Shanghai reducing down-payment ratios for first-time homebuyers and expanding the definition of non-luxury homes to benefit more buyers. The incentives were aimed at propelling homebuying by offering lower mortgage rates and cutting home purchase taxes.