Shanghai Property Prices Collapse

China Collapse

Shanghai new residential housing prices are reported to have fallen by 16% week on week for the period ending May 23rd, to 19,204 yuan per square meter.

We won’t even attempt to annualize that percentage, but clearly it’s a sharp drop if representative of the trend to come.

This is based on data from Youwin System and 1lszp.com via Capital Vue:

Capital Vue:

Transaction area rebounded 27 per cent week-on-week to 76,000 square meters.

Total transaction volume in Shanghai increased 36.06 per cent week-on-week to 1,981 units, according to statistics from Midland Realty Research Department.

New supply of housing available for sale decreased 23 per cent week-on-week to 158,600 square meters.

Perhaps this is why the government appears* to have become gun-shy in regards to further tightening vs. the housing market.

*If reports about no second home taxes are correct.

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