Shanghai saw record sales of luxury homes in the first half of this year amid robust sentiment despite several measures by the government to cool the overheated market, latest market data suggested.

From January to June, 5,041 units of new homes costing 10 million yuan (US$1.5 million) and above each were sold in the city, or more than 60 percent of the total volume transacted last year, Shanghai Homelink Real Estate Agency Co said in a report released yesterday.

“While 2015 was regarded a record year for high-end housing in Shanghai due to very strong sales, the first six months of 2016 proved to be even more crazy as sentiment seemed extremely robust despite government efforts to cool the overheated market,” said Lu Qilin, director of research at Homelink. “While austerity policies, including a higher minimum down payment for second-home buyers and a higher eligibility threshold for non-local residents to buy a house, did damp momentum in April, the market rebounded quickly in the following two months through June.”

The Pudong New Area led all districts with sales of 1,371 units in the six months, followed by Minhang’s 544 units, Zhabei’s 467 units and Putuo where 434 units were sold. Shanghai Legend in Pudong became the most popular project in the 10 million yuan and above category after selling 406 units for an average price of 72,745 yuan per square meter each over six months, Honelink data showed.

A report released yesterday by global real estate firm JLL showed the average price of new high-end homes added 0.9 percent quarter on quarter, or 15.3 percent year on year, to 101,516 yuan per square meter in the second quarter of this year.

“Supported by strong domestic immigration, Shanghai’s housing market still offers strong growth potential over the long run,” said Stephenie Zhou, head of residential for JLL Shanghai.

(Source: ShanghaiDaily  Author: Cherry Cao)