Shanghai’s new housing market rebounded last week from the Spring Festival holiday doldrums, market data showed yesterday.
The area of new homes sold, excluding government-subsidized affordable housing, jumped to 184,800 square meters during the seven-day period ended on Sunday, up from 9,200 square meters sold in the previous week, Shanghai Homelink Real Estate Agency Co said in a report.
The mean price of the new homes was 35,894 yuan (US$5,500) per square meter, a weekly rise of 7.5 percent.
About 76,900 square meters of new houses from three projects in the city were released locally last week, Homelink data showed. That compared with a zero supply recorded in the previous seven-day period.
“Market sentiment recovered notably as we expected, with the medium to high-end segment performing well which led to the increase in the average cost of new homes,” said Ke Xiaojuan, a researcher at Homelink.
Ke said property sales are expected to rise because of the “latest government measures introduced over the weekend” and “we are seeing a very promising March in both transaction volume and value.”
Last Friday, the Ministry of Finance, the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development announced jointly that deed and business taxes for home purchases in most Chinese cities would be cut.
Effective yesterday, buyers in four gateway cities including Shanghai will be eligible for a “deed tax” of 1 percent when they buy a house no larger than 90 square meters, or a 1.5 percent rate if the home is larger. Previous taxes were between 1 percent and 3 percent.
To qualify for the preferential rate, the house must be the only property owned by the household, a joint statement said.