SALES of previously owned homes in Shanghai fell in October as price increases and a notable fall in supply hurt buying sentiment, a market report said yesterday.
Purchases of such homes totaled 16,232 units citywide last month, down 2.5 percent from September, but surged 127 percent from a year earlier, Shanghai Deovolente Realty Co said in a report yesterday.
They were sold at an average 16,709 yuan (US$2,652) per square meter, down 0.9 percent from September.
"Despite the insignificant monthly drop, it was still the second-highest October volume in six years since 2007," said Lu Qilin, a Deovolente researcher. "As expected, mid- to low-end properties further consolidated their dominance in the market."
The city saw sales of 14,217 units of previously owned homes costing not more than 2 million yuan each last month, or 87.5 percent of the total sales. In September, such sales accounted for 86.7 percent, Deovolente said.
Homebuyers were held back by owners raising prices and on an insufficient new supply.
Owners "raised prices in the second half of October by between 1 and 2 percent," said Huang Hetao, a research manager at Century 21 China Real Estate, adding that some owners' wait-and-see attitude led to a fall in new supply.
Landmark building should respect the public's feeling
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