Supply and transaction volume of new commodity housing both declined in Shanghai last month, while the average transaction price continued to go north for the second consecutive month with more high-end properties being purchased.

Last month, supply of new residential properties, excluding those designated for relocation uses, fell 13 percent to approximately 950,000 square meters while during the same period, a total of 979,200 square meters' spaces were sold, a month-on-month drop of 1 percent, statistics released by Shanghai Youwin Real Estate Information Service Co Ltd have shown.

However, the average transaction price of new commodity housing in Shanghai rose further to 15,120 yuan (US$2,160) per square meter in April, compared with 13,106 yuan in March and 11,043 yuan in February.

"The top five best-selling new residential projects in the city last month in terms of total transaction amount were bought at average prices of 90,991 yuan, 32,580 yuan, 46,156 yuan, 21,233 yuan and 29,929 yuan per square meter," said Xue Jianxiong, head of research at Youwin. "Besides, those ranking No. 6 to No. 8 were also high-end properties with prices above 30,000 yuan per square meter."

Statistics have found that among the city's 65 batches of newly-released residential properties in April, 53 percent, or 34 batches, raised their asking prices.

Meanwhile, small and medium-sized apartments were found to be sought after in the city last month. For instance, the top three best-selling new commodity housing projects in terms of transaction area had an average unit size of 80, 84 and 75 square meters.

It still takes time for the local housing market to recuperate its strength, industry sources said.

The Labor Day holiday real estate fair, which was closed on Sunday and always regarded as an important barometer for the local housing market over the coming months, suffered significant drops in both numbers of visitors and deals of intention.

According to the organizer, about 80,000 visitors went to the four-day fair and 308 contracts of intention had been signed, compared with some 110,000 visitors and 785 contracts of intention made last year.

(Shanghai Daily May 6, 2008)