Shanghai's housing market is showing some signs of a pick-up, with significant growth in supply and transactions of new homes over the past few weeks.

The local supply of new homes, excluding those designated for relocation uses, has jumped to 801,500 square meters between March 1 and March 25, from 384,100 square meters in the whole of February. During the same period, some 735,300 square meters of new homes (excluding those designated for relocation uses) had been sold, up from the 383,000 square meters of space sold last month, according to statistics compiled by Shanghai Youwin Real Estate Information Services Co.

"The market has rebounded as expected, since the months before and after the Chinese Lunar New Year holiday are the traditional slack seasons for the property market,'' said Zhang Qi, an associate director at the research department of China Index Academy. "And we expect the buying sentiment to remain strong in April.''

More projects

February saw record low transactions of houses in the city due to the traditional slack Spring Festival season, the most disastrous snowstorms to hit the country in five decades and tougher macro-control policies aimed at cooling the overheated real estate market, analysts said.

Meanwhile, industry experts said more than 30 residential projects will be launched in the city next month, with nearly half located in downtown areas. The Waterfront, located within the Inner Ring Road and boasting a view of Suzhou Creek, is due to launch one of its nine towers in late April.

But warnings have been raised that the rapid pick-up might also lead to a rise in housing prices.

"For sure, the rather abundant supply will give home buyers a wider choice,'' said Xue Jianxiong, head of research at Youwin. "But the fast increase in transactions of new homes over the past few weeks might lead to further price increases.''

(Shanghai Daily March 28, 2008)