Photo: Stuck in Customs on flickr
Shanghai real estate companies have confirmed that sales are down in the city, and June will likely be weaker than May, according to Shanghai Daily. That prediction from the city’s real estate sector includes both new and existing homes.What’s the problem? Well it appears current homeowners aren’t willing to budge on price.
From Shanghai Daily:
“Compared to May, we’ve had fewer clients looking at homes and that will naturally lead to less deals,” said Chen Yujue, deputy general manager of Shanghai Centaline Property Consultants Ltd, operator of the city’s largest estate chain in terms of transaction value. “However, the majority of home owners continue to be firm on their asking prices despite the sluggish sentiment.”
If you have weakening demand, and a supply unwilling to budge on price, it’s unlikely you’re going to get very many sales. But this is not the sign that the Shanghai property market is crashing. That will likely be confirmed if and when homeowners start cutting prices in order to get liquid on their investments.
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