Shanghai’s second-hand home sales tumbled 60% on year in first half, rebounded in June
Shanghai’s second-hand home sales tumbled 60% on year in first half, rebounded in June

Shanghai’s second-hand home sales tumbled 60% on year in first half, rebounded in June

 

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Pre-owned home sales in China’s financial hub of Shanghai tumbled more than 60% year over year in the first half of 2022 amid a persistent downtrend in the housing market and the impacts of the Covid-19 outbreaks which led to a two-month lockdown in the city.

Sales rebounded in June after the city lifted a two-month Covid lockdown and some analysts say the recovery will sustain in the second half of the year.

Some 56,800 units of pre-owned homes changed hands in Shanghai in the first six month of the year, sliding 68.3% from the same period last year, according to data released by Centaline Property.

In the first three months, the city’s pre-owned home market extended the downtrend that started in 2021 and in April and May, sales dropped to nearly zero, showed the data.

In June alone, sales rebounded amid production and business resumption and transactions of pre-owned homes hit the highest in the first half.

Separate data from Shanghai HomeLink Real Estate Agenc showed that second-hand home transactions in the city approached 16,000 units in June. That was largely in line with the average one-month level seen before this round of Covid 19 outbreaks, said Yang Yulei, chief analyst at Shanghai Homelink, adding that the market didn’t show overheating signs of overheated because of pent-up demand accumulated in two-month lockdown.

Average price of second-hand homes grew moderately by month in the first half, hitting 55,373 yuan per square meter in June, rising by 0.26% from the previous month, compared to 0.25% gain in May and 3% rise in April, according to data from Anjuke.

Second-hand home markets in major cities remained sluggish and the pace of recovery was slower than new home market, but in Shanghai, several key indicators of the local second-hand home markets showed signs of recovery, said Lu Qilin, research director at 58 Anjuke Real Estate Research Institute.

Data from 58 Anjuke showed that, the number of second-hand home listings increased by 45% in June from the month before and and the duration of the listings shortened by 21.4% on month after rising for two consecutive months. The shorter duration indicates pickup in transactions and shortening transaction cycle.

Indicators including second-hand listings suggest that the market rebound will sustain and in the second half of the year, average monthly transactions may hit 20,000 units, said Lu Xiwen, analyst at Shanghai Centaline.