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Feb 2017 Shanghai Property Market Monitor


In Feb 2017, the land market became warm. The area of transacted land for building residential properties was 519,414 square meters, up 1.7 times m-o-m. The area of transacted land for building commercial properties was 3509 square meters and the area of land for building industrial properties was 140881 square meters. For residential land, there were 6 pieces of land for building commodity residential properties and 4 pieces of land for building welfare and resettlement properties. The numbers of land reached the highest value since last October. The land for building commodity properties was located in Jinshan and Pudong. The average floor price of sold residential land in Jinshan was 10,309 yuan per square mter and the average floor price of sold residential land in Pudong was 21,212 yuan per square meter.  Jinshan district was the district where the price of residential properties always is the lowest among other districts due to the long distance far away from city center and the inconvenient transportation. The government encouraged people resettle in Jinshan district which means the demand for residential properties was still high. The Pudong Lingang district is the new strategic area for manufacture and it is estimated that the population will grow and in turns shift the demand for the residential properties.

According to Financial Times, the oversea investment in real estate of Chinese enterprises decreased by 84% y-o-y in January 2017 due to the capital control of Chinese government. In the latest several months, Chinese government constrained the capital outflow in order to stop the depreciation of RMB. In 2016, the oversea investment of Chinese enterprises increased 44% y-o-y and the total investment value reached to 170 billion us dollars. Chinese government said that in January 2017, the oversea non-financial direct investment decreased by 36% y-o-y, to 7.8 billion us dollars when the tight measure started to implement in the end of December 2016. According to JLL’s data, the oversea real estate investment of Chinese enterprises grew by 53%, which was the highest recorder in the history.

In Febuary 2017, the average supply price of residential properties was 54, 124 yuan per square meter, as the same as last month but up 0.3% y-o-y. The average demand price of residential properties was 49,021 yuan per square meter, up 0.3% m-o-m and up 37% y-o-y. The transacted floor space of Shanghai residential properties was 940,000 square meters, up 5.6% m-o-m but down 6% y-o-y. According to the policy reasons, the demand price and the transacted floor space of Shanghai residential properties was increased only a bit slightly.

Please click the following link to read or download the full version of the report:http://www.aquaspacegroup.com/en/upload/files/Feb%20en(6)(1).pdf