Fewer housing projects to sell
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Shanghai Daily, December 29, 2011
Developers unveiled fewer residential projects this month compared to a year ago but those that they launched were cheaper to buy as they seek to increase sales to replenish their capital, according to a latest industry report.
Thirty-eight residential developments were launched in Shanghai so far in December, down 42 percent from the same month a year ago, Soufun.com said in a report yesterday.
But on a monthly basis the 38 projects represented an increase of 31 percent.
"A lower price will better meet market needs and therefore help developers to generate revenue quickly to boost their capital," the report said.
Of the 38 developments launched this month, 27 have an average price of less than 20,000 yuan per square meter, with one project having the lowest price of around 7,000 yuan per square meter.
More than 80 percent of the projects launched are located on the outskirts of the city.
"There are only a limited number of residential projects in downtown areas and developers chose to launch smaller and cheaper housing on the outskirts of the city," said Tang Zhengwei, a researcher with Soufun.
"The purchase restrictions are likely to continue next year and property developers rushed to launch the projects at the end of the year" hoping to generate income, Tang added.
Developers will push back the launch date for 18 other projects in January or after the Spring Festival which starts on January 23.
Last week, the city government said it will strengthen moves to curb housing speculation and to continue the curbs on purchases in 2012.
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