Soufun.com’s researched arm just published that sales in Beijing fell 19 percent in the first three quarters of the year and prices dropped an average of 10%.
In the meantime, Shanghai’s transactions (on paper) are down 5% yet prices rose 14% in the period from January 2011 to September.
The neat developement that is Ferguson Lane on Wukang Road near Tai’an Road in the French Concession has expanded already last year by taking in the Residential Mansion in front of Franck and convert it into a modern Gallery Space.
Now it has continued on it’s way to become a major French Concession Destination by acquiring the Real Estate Hotel (actual name really was this, since the owner was the Real Estate Bureau of Shanghai) and added 5 Floors of Office Space over 3300 square meters, and a grand first floor flag ship Restaurant, 2nd Floor Cocunut Paradise and top Floor Cocktail Bar.
Ferguson Lane is a Hongkong Shanghai Creative, upper class developement, housing boutique businesses, creative and financial companies as well as some fine Dining Restaurants.
Commercial Space in Ferguson Lane is for lease here.
Shanghai just keeps going and going, and going, it might be time that energizer lets go of it’s catch phrase and leaves it to our beloved real estate market.
According to reports, in March 2010 sales are up an astonishing 150% for storefronts and malls from february.
And 55% more than they were in march 2009.
There has been an increase in develepements, and the chinese new year holidays have certainly played a role, but this doesn’t keep me to still take a step back and glance at the numbers in awe.
The average price has increased 0.37% for march from february and is also up 48% from March 2009 and locked at 19767 Rmb per square meter average.
The city has seen a huge increase in investment style storefronts for sale in newly developed malls especially in the minhang and songjiang area, they’re often sold with tenants already waiting in line to take up the place and pay rent.
The hubs in the areas nearby major subway stops such as Xinzhuang and the new Songjiang stops have gotten a great boost in recent years thanks to the influx of people from the rural areas taking up jobs in the city and living in the more affordable areas nearby the subway stations.
What may come to no surprise to some is that mainland buyers are increasingly snapping up Hong Kong luxury properties recently.
1 in 5 luxury properties in the island city (a property sold at higher than 10 Million Hong Kong Dollars is considered luxury) comes from the mainland now.
The more accurate figure is 18.1 % according to Centaline Property Agency or Zhong Yuan.
Since the downturn in 2008 more and more Mainlanders rush to the island to buy bargains deemed good investment.
Shanghai itself has slowed down a bit and transaction volume is siginifcantly lower.
It’ll be interesting to see what comes after the holidays.
Happy chinese new year everyone, may the year of the tiger bring health and success to all of you.
Hello 2010!
I hope that all of you, as I had a great ride into the new year, excited to see what 2010 brings, especially in our fantastic Shanghai!
1.32 Billion RMB
…thats what Shanghai’s Gubei Developement Group paid for block B7 and B8 or roughly 33 acres in Shangha’s tourist town Zhujiajiao (or little venice).
146% price increase, and they beat out 14 other competitors, congratulations!
298100
Is the new record of 2nd hand houses sold during one year in Shanghai. And
it was last year!
320.7 Billion Rmb was the transaction volume of these apartments and houses not including
new developements, also a record.
14.5 Million Rmb
…is what Shanghai’s hero Liu Xiang paid for a 436 sqm Villa in Putuo. Roughly 33′000 Rmb per square meter.
The olympic gold medalist will surely bring lot’s of attention to one of the hottest Shanghai districts these days.
For some people it’s fear, for most it’s joy, the gov. people and developers coming in and offering to buy the property you hold of your hands.
They usually offer a little more until you refuse them a few times and they offer you a huge sum above market price for your pad.
This just happened to an old guy holding a smal 30 square meter one bedroom no kitchen place on Sinan Road that is supposed to become the next Xintiandi.
Negotiating for months the developers have gotten nowhere,
our Shanghainese hero has of yesterday been offered 35 Million Rmb for his 10 square meters of the new Xintiandi.
And I write about him here, because he refused this offer.
350k Rmb per square meters for his old run down “gongfang” that has already been abandoned by most of his neighbors wasn’t enough.
Yesterday, he told us, he’s holding out for 120 Million, and apparently they can offer him this or build the new paulaners around him.
Now, that would mean Real Estate prices have still some room to go, and that this elder citizen might be shanghai’s most shrewd negotiator in the property game.
Shanghai’s Real Estate Market climbed another 3.9% in October after briefly slowing down in September this year.
Real Estate investment in the city is up 19% for the year and the total transaction volume is up nearly 50% for the year.
Prices also rose 56% year on year and news about an interest hike have not slowed the run on shanghainese properties yet.
With prices escalating into the clouds and new loan rules tied together with the profit taxes introduced in 2005 it’s become a lot harder for speculators to flip properties for profit in the city.
But, as always, Shanghai’s property people found a way. Several people are getting on the boat to place downpayments on hot new luxury properties like the Bund Summit (or Bound on the Bund now).
I read on sh.focus.cn that speculators make the downpayment, pay the broker and wait for somebody to take the bill of their hands for an “extra fee” of 500k to even 1.2 Million Rmb in one case.
The bet seems to pay off, 43 property transactions and counting for the 60 thousand Renminbi per square meter luxury development on Shanghai’s Bund.
Disney apparently got the heads up this week from Shanghai authorities for Pudong’s Disney World and according to the local real estate brokerages on chuansha road property prices averaged up 1000 Rmb in the same day.
Not all is finalized but there seems to be only formalities standing before Mickey’s feet touching down on the other side of the river.
The theme park is set to lift prizes in the area and will span more than 4 times the size of Disney Land Hong Kong.
It is estimated that Shanghai’s Disney Land will cost around 3.5 Billion US$ to build.
Shanghai Real Estate has been on a real run alongside the stock index this year.
Though volume has slumped prices hold up pretty well and most recently have hit new highs in many commercial centers such as Xujiahui and Xintiandi.
Why the market moves up can be argued with a lot of reasons.
What has struck me about this “real estate rally” is that there is no correlation with the rental prices.
I’ve looked back in our database back to 2005 and have found that in many cases rents actual move opposite directions.
It could be that the two are not as interconnected as previously thought, and it could also mean that the market is healthier now than before, meaning that lower rents and no rents don’t force landlords to sell the property prematurely.
I compared our database and rents were a lot higher in 2005 then they were in 2004, they also went up in 2006 when the sales market stalled.
Yet in 2007 they were virtually the same.
In 2008 rents went down from 2007, mainly because of the panic resulting from the massive failures on wall street (like bear stearns).
Interestingly the stock market came down in a craze too but sales were stronger.
They’re still moving up until today yet rentals have come down from 2008 but are a little bit higher than in the beginning of 2009.
I link more of those to emotions, places don’t stay empty, they get rented out, fast, I would even say quicker than before.
But, Companies have more negotiation leverage, the economy is bad, and they pressuring landlords into lower prices now, and it works, mainly because landlords are letting others worry them.
There was a real interesting article on Focus Shanghai recently, examining the new house supply in the city and the rapid consume recently.
According to DTZ Shanghai’s housing reserves are still feeding from new developements from 2006 and before.
The Real Estate Industry in China considers Housing Reserves as what is extra after what the market predicts will be consumed in 18 months.
From 2006 until now, Shanghai’s Reserves have been exactly 0 (spelled out zero).
The Research expects the reserves to be 0 and be mostly used up within the next three years.
Much of this the research pushes to foreigners, beginning to actually settle in the city.
After years of renting, affluent migrants, and expats are beginning to see Shanghai as their permanent home, hence the recent buying spree, after the recent slump last year many people started to pick up bargains and prices rose quickly again putting buyers under pressure to avoid ever rising higher prises.
Quite amazing, thinking of oversupply, being in this market. The bearish mood. The news from the western world.
But, also, the recently sold out Wellington Garden (after being a drag for 6 months), raising prices again after quickly lowering them last year.
The Casa Lakeville going like crazy and even the Tomson Riviera (China’s so called most expensive luxury housing) supposedly selling more than 20 units this year already.
Shanghai’s Real Estate market, something truly interesting to watch these days, the total makeover for the expo,
Expats really “settling” here, the new Jing An Temple Skyline, the tallest tower so far (Shanghai Center) and the 22 Line Metro Grid.
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