Real estate showrooms appeared just as crowded as some tourist haunts in Shanghai over the National Day “golden week” break, after central authorities’ stimulus efforts and loosened buying rules triggered a rebound in home sales interest in China’s biggest city.
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Sales brokers said Shanghai’s revival could be a bellwether for other top-tier cities as they lure homebuyers from across the country. But the same might not apply for other localities, which could be left behind despite the improving sentiment, they said.
Homes are well oversubscribed at a new development in Shanghai’s suburban Minhang district, about 25km (15 miles) from the Lujiazui financial district. More than 300 buyers registered or put down advance payments for just 143 units up for grabs, according to various mainland media reports.
Another housing project – by state-owned developer China Resources – sold 46 flats worth 216 million yuan (US$30.8 million) within three days, despite being 40km from the city centre, according to the 5i5j home sales information platform.
Closer to the central business district, second-hand homes are also attracting renewed interest, with owners raising prices and prospective buyers scrambling to close deals in anticipation of further price rises.
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The revival comes after Beijing announced sweeping stimulus measures last month in response to mounting concerns about the sluggish national economy, as well as the ailing stock and property sectors.