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By Lam Jian Wyn of theedgeproperty.com Thursday, 02 September 2010 18:15

KUALA LUMPUR: Sales volume of new homes in Shanghai, excluding units allocated towards relocated residents under urban redevelopment plans, surged by 70% to 730,000 sq m in August, a report from Shanghai Uwin Real Estate Information Services Co said. A solid recovery in sales last month saw volumes and prices grow to reach the four-month high, underpinned by improving buying sentiment, reported Shanghai Daily, which sourced the information from Shanghai Uwin. Prices of new houses in Shanghai last month hiked by almost 10% from July to about 21,156 yuan (RM9,746) per sq m, as more mid- to high-end houses were bought. To illustrate the price increase, 87 apartments spanning 16,949 sq m in upscale residential project Wharf Xiyuan at New Jiangwan Town, Yangpu district, were sold at an average of 43,702 yuan psm in August. Meanwhile, about 96,000 sq m of new homes going for over 30,000 yuan per sq m were sold in August, marking a 110% jump from July. Of new homes sold in Shanghai, almost 60% averaged 90 sq m each, Uwin research showed. "Market momentum rebounded in August as some home buyers, who sat on the sidelines waiting for price cuts, finally decided to purchase because the latest tightening measures by the central government did not seem to take full effect yet after being implemented for four months," said Uwin analyst Lu Qilin. "On the other hand, an increased supply of mid- to low-end houses during the period also helped boost demand, particularly from end-users," he added. Meanwhile, supply of new homes swelled by 58% from July to 810,000 sq m. Over half of these homes were in the outskirts, namely Jiading, Fengxian and Baoshan. From that amount, 640,000 sq m were released in the second half of August, marking improved sentiment among developers looking to cash in on strong sales in September and October. In other news, a new record land price had been set at the Songjiang district in Shanghai with the Hopson Group’s acquisition of a 94,476 sq m tract of land for 1.24 million yuan or 16,488 yuan per sq m. The parcel, Guang Fu Lin 2-5, is designated for residential use and has a land ratio of 0.8, according to a report by the Oriental Morning Post