IFM Investments Limited (ADR) (CTC)

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Home sales hit highest in 17 months2012-07-06 09:14
SHANGHAI'S existing property sales soared to the highest in 17 months in June as buying sentiment among home seekers improved.

The purchases of previously-owned properties, most being residential developments, jumped 20.3 percent from May to 19,300 units, Century 21 China Real Estate said in a report yesterday.

"It's rather rare to register booming sales in June as property sales are usually low due to the hot weather," said Huang Hetao, research manager at Century 21. "A number of factors, including continued recovery in demand from buyers to upgrade, the latest interest rate cut and a generally easier credit from commercial banks, lifted transactions."

The existing properties were sold at an average 15,700 yuan (US$2,484) per square meter, down 3.2 percent from May.

The price dip was mainly due to a higher proportion of mid- to low-end properties.

Shanghai Centaline Property Consultants Ltd also reported a sharp sales increase in the mid- to low-end segment in June.

Deals involving existing houses priced at less than 1 million yuan surged 42 percent from May while those costing between 2 million and 3 million yuan rose more than 36 percent from a month earlier.

Nearly 70 percent of the total deals in the city in June involved existing homes smaller than 90 square meters while previously-owned homes costing not more than 1.5 million yuan took up more than 72 percent, according to Century 21.

For the first six months, sales of existing properties fell 3 percent year on year to 80,200 units in the city, it said.