Shui On set to smash Shanghai property price record with latest units in Xintiandi expected to fetch 300,000 yuan/sq m
Lakeville Luxe’s most-expensive flats come with either a garden or roof top and a private lift
Shui On Land’s soon-to-be released Lakeville Luxe residential development in Xintiandi, Shanghai’s bar and shopping district, could set record-breaking prices for the city, just as a new round of cooling measures are introduced to curb price growth.
The priciest unit in the upcoming batch of 50 units at Tower 2, Lakeville Luxe’s fourth phase, is to be offered at 300,000 yuan per square metre, according to Allen Taylor, general manager of product development and high-end residential sales at Shui On Development, a subsidiary of Shui On Land
“Those will come with either a garden or roof top with a private lift. We will also provide designers and architects to offer tailor made service to buyers,” he said.
Hong Kong-listed Tomson Group’s Tomson Rivera in Pudong is currently the residential price record holder in the city, having achieved 260,000 yuan per square metre, according to E-House Real Estate Reseach Institute.
In September,Shui On sold one 380 square metre unit at the Lakeville Luxe site for 100 million yuan in a deal that included a 500-square-metre basement and 20 million yuan worth of decoration and furniture imported from Europe and elsewhere.
The new rules included strengthening its system for granting pre-sale permits for new projects, and increasing the supply of new flats.
Albert Lau, chief executive of Savills China, said the municipal government had succeeded in slowing the pace of pre-sale permits on new developments.
“It doesn’t want to see new flats being offered at high prices,” he said, “and that explains why not many new projects were launched during the National Day holiday.”
Shanghai’s latest curbs come after Beijing, Guangzhou and Shenzhen imposed restrictive measures ranging from raising down-payment requirements to barring non-local from buying. Twenty-one cities now have buying restrictions in place, a dramatic increase in the past month.
Taylor said it took longer to process applications for pre-sale permits as the government demands more comprehensive information from developers in a bid to justify their pricing.
The upcoming sale of the 50 flats at Lakeville Luxe comprises standard units of 280-400 square metres with special units of up to 800 square metres, all of which will be released by the end of the year or first quarter of next, said Taylor.
“Our buyers are mainly local residents ,” he added.