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:
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.