A house in Shanghai was recently purchased at the unit price of 344,900 yuan ($51,486) per square meter, China Economic Net reported on Tuesday. Analysts said that the deal sets a new record for the highest transaction price in the Chinese real estate market. The total price of the 700-square-meter house was 242 million yuan.

Information released by global real estate services provider Savills shows that the house was in a highly desirable residential community in Shanghai. The community is surrounded by many schools and commercial areas. Even so, the selling price set a record high in Shanghai's real estate market, and some analysts believe it to be the highest ever in China.

In the first half of 2016, a total of 682 houses in Shanghai were sold at unit prices of over 100,000 yuan per square meter, according to statistics from a real estate consultant firm. This is a dramatic rise compared to 195 houses sold at that price level in 2015.

An insider disclosed that with more and more deluxe houses selling at such high price points, the rigid housing demands of younger people will be increasingly harder to meet.