The market for old properties is picking up again despite the hot weather

The momentum of buyers of existing homes improved further in Shanghai in July, despite the scorching weather, as the market continued to regain strength after a two-month COVID-19-related lockdown, which had put seekers of slot on the key.

More than 20,000 occupied homes, worth a total of about 65.9 billion yuan ($9.73 billion), changed hands across the city last month, a month-on-month jump. other 28% and 37%, respectively, according to the latest data. of Shanghai Homelink Real Estate Agency Co.

“Sentiment among housing seekers continued to pick up from June, when some of them naturally took a wait-and-see approach,” said Yang Yulei, senior analyst at Homelink. “The recovery was in line with our expectations and we expect such momentum to continue over the next two months.”

By price, the average cost of an existing home was 3.28 million yuan in July, up 7 percent from June.

Citywide, Nanqiao in Fengxian Suburban District, Central Area of ​​Jiading Suburban District, and Zhoukang in Pudong New Area were the most sought after areas for home buyers, while Jinshan New Town in Suburban District from Jinshan and Huinan to Pudong also seemed popular options. Homelink data showed.

“July’s performance, which is a traditional low season for property sales, was quite good considering the scorching weather,” said Lu Wenxi, senior researcher at Shanghai Centaline Property Consultants Co.

“Holding above the 20,000-unit threshold could indicate the prevalence of fairly strong momentum that will hopefully further bolster the confidence of potential buyers over the coming months.”

In the first seven months of 2022, some 77,000 residential units worth 242.6 billion yuan were sold in the city, down 62 percent and 64 percent, respectively, from the same period. a year ago. That improved from a 68% and 71% drop in the first half.

On average, existing homes sold for 3.16 million yuan per unit in the January-July period, down 6 percent a year.

Notably, the proportion of buyers with tight budgets increased in the first seven months, with deals worth less than 2 million yuan accounting for 35.4% of the total, up 6.8 percentage points. year over year, according to Homelink data.