Housing transactions in Shanghai ticked up after local authorities relaxed home purchase restrictions and lowered mortgage rates to underpin the stagnant property market.
But the buying spree may be short-lived due to mounting worries about the economy and job prospects.
“The stimulus policies have effectively inspired some buyers with strong demand to make their purchase decisions,” said Song Yulin, a senior manager with property agency Lianjia in Shanghai. “But it is still a buyer’s market since most owners will have to offer price cuts to get their flats sold.”
According to data from the Shanghai Commission of Housing and Urban-Rural Development, 172,000 sq metres of new homes found buyers in the last week of August, up 7 per cent from a month earlier. The transaction volume also hit a nine-week high.
A total of 3,949 pre-owned flats changed hands in the same week, up 11 per cent from July.
