SHANGHAI'S second-hand housing index rose at a slower pace last month amid more stringent credit controls over mortgages for people with more than one home, the index's compiler said today.
The index advanced 1.5 percent to 2,217 in December, the smallest increase since June. It is released monthly by www.ehomeday.com and tracks prices for used apartments across the city.
``The clarification of multiple mortgages made jointly by the People's Bank of China and the China Banking Regulatory Commission on December 11th has somewhat curbed demand,'' said Chi Shengyu, an ehomeday analyst.
``A raised threshold for down payments and higher interest charges hampered some home purchase plans by both speculators and end-users.''
Multiple mortgages have now been defined as a family unit, including spouse and children, the central bank and the CBRC said.
Mortgage holders who apply for a second home loan are required to make a 40 percent down payment and pay a 10-percent premium on interest rates. The requirements on third and fourth mortgages are stricter.
The first mortgage rules remain unchanged with a 30 percent down payment required and a 15-percent discount on interest.
Used apartments in prime areas led December's gains with those by East Nanjing Road, Huaihai Road, Jing'an Temple and West Nanjing Road jumping 7.76 percent, 6.26 percent, 5.91 percent and 5.86 percent respectively.
Moreover, due to the rapid expansion of the city's metro network, prices for second-hand houses in Kongjiang, Zhongyuan, the North Bund and Pudong areas all rose significantly over the past month, each securing increases of 4.67 percent, 4.46 percent, 5.18 percent and 4.09 percent, the compiler said.
Meanwhile, the rental index, which is also compiled by the Website, climbed 0.6 percent to 1,123 last month with a mixed performance in different categories.
The average rental for high-end apartments – defined as rent of more than 6,000 yuan (US$820) per month for a regular two-bedroom apartment – edged up 0.4 percent with major gainers including Zhenning Road and Gubei areas.
Middle-class properties, which are leased for between 2,000 yuan and 6,000 yuan per month for a regular two-bedroom apartment, dipped 0.2 percent from a month earlier, with those in Luwan, Minhang and Putuo districts falling the most.
The average rental for the city's privatized public apartments gained a moderate 1.4 percent last month, reflecting a stable market.
Shanghai Real Estate market
Shanghai (Chinese: 上海; Pinyin: Shànghǎi; Shanghainese: /zɑ̃'he/; abbreviation: 沪; nickname: 申), situated on the banks of the Yangtze River Delta in East China, is the largest city of the People's Republic of China and the eighth largest in the world.[4] Widely regarded as the citadel of China's modern economy, the city also serves as one of the nation's most important cultural, commercial, financial, industrial and communications centers. Administratively, Shanghai is a municipality of the People's Republic of China that has province-level status. Shanghai is also one of the world's busiest ports, and became the largest cargo port in the world in 2005.
Originally a fishing town, Shanghai became China's most important city by the twentieth century and was the center of popular culture, intellectual discourse and political intrigue during the Republic of China era. After the communist takeover in 1949, Shanghai languished due to heavy central government taxation and cessation of foreign investment, and had many of its supposedly "bourgeois" elements purged. Following the central government's authorization of market-economic redevelopment of Shanghai in 1992, Shanghai has now surpassed early-starters Shenzhen and Guangzhou, and has since led China's economic growth. Some challenges remain for Shanghai at the beginning of the 21st century, as the city struggles to cope with increased worker migration, a huge wealth gap, and environmental degradation. Despite these challenges, Shanghai's skyscrapers and modern lifestyle are often seen as representing China's recent economic development.
Monday, January 14, 2008
Shanghai housing index rises at slower pace
Labels:
Shanghai
