Shanghai Residential

Asian Cities

2H 2017

 

Shanghai’s residential sales market
Shanghai’s, and indeed China’s, residential market has once again defied many market commentators’ expectations over the last two years by recording a staggering 50% growth in pricing. This has brought average pricing to RMB48,000 per sq m by Q2/2017, while some of the most expensive units have traded at more than RMB200,000 per sq m. First-hand average transaction prices are now 360% more expensive than they were ten years ago.

The staggering growth has once again forced the government to step in to cool the market, this time by implementing stricter house purchase restrictions and increasing down payment requirements, and changing the definition of what counts as a second home for mortgage purposes, as well as a number of other smaller measures such as land price caps, and reducing the discount to base lending rates for mortgages.

 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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