Date
24 September 2017
Tepid sales and high inventory are prompting Hangzhou developers to cut home prices. Photo: Xinhua
Tepid sales and high inventory are prompting Hangzhou developers to cut home prices. Photo: Xinhua

Hangzhou said to see new wave of home-price cuts

Hangzhou, the capital of China’s eastern coastal province of Zhejiang, is seeing the second wave of price cuts in its property market as developers launch new promotions after earlier initiatives in March, China News Service reported Sunday.

A high-end villa by the city’s Qingshan Lake was recently offered at a price that is close to the level pegged for apartments, indicating that there is no way to fight the trend even in the luxury home segment, the report noted.

Twelve residential developments launched sales at the same time on Sunday, marking the largest simultaneous sale this year in the city and suggesting that supply is still in excess. Data showed a total of 76,004 homes were looking for buyers as of end-March, up 36.2 percent from a year earlier.

Meanwhile, a housing project classified as mid-to-high end in Shanghai’s Pudong district began offering on Sunday some units at around 36,000 yuan (US$ 5,750) per square meter, 28 percent lower than their original 50,000 yuan price, according to the 21st Century Business Herald.

The project is said to have sold only seven units out of a total of 113 units since it went to the market in October last year. Some industry insiders saw the promotion as a sign of an impending wave of price cuts in Shanghai’s suburban areas. Some developers are selling their housing stock inventory as a “special offer” rather than describing the move as a direct price cut.

Data showed less than 500,000 square meters of homes were sold in the first 20 days of April. The figure for the full month is expected to be lower than the March volume, the report said, also adding that at least 41 new projects are set to begin sale in May.

– Contact HKEJ at [email protected]

TL/AC/RC

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