Well. It’s me again, to complain about the craziness of the real estate market in Shanghai. I have talked about it many times in my previous post about real estate.
Let’s talk abut the recent round of rise of real estate market.
There is a new residential area called Xing He Wan 星河湾 near where I live – in Pudong, at Jinxiu Road and Long Yang road – within walking distance. They just opened to the market at 50,000 RMB/sq. meter. The market responded like crazy, and all the apartments were sold out in the first 3 days. That means 10 million to 20 million RMB (or 1.5 million to 3 million USD) per apartment there.
The rise of price in high end real estate showed, in my opinion, the expectation for inflation of RMB. Not only in Pudong, high end houses in Pudong get 50% raise in many places. 80,000 RMB/sq meter is the new high end house record, like the Kerry Garden near Huashan Rd, and Jiangsu Rd.
The other reason for the strong growth in housing market these days is about the lose of control of bank mortgage. It has never been easier to get loan from bank in the recent months.
Meanwhile, the real estate market for business seems to enter winter. The interesting contrast of summer in high-end house, and winter of office buildings are telling a solid story for me: it is a bad sign for the economy.
Disclaimer: Please note that I am not an expert in real estate. Don’t count on someone who never really looked into it to tell you any insights about this market. The only advantage I get is, I actually live in this city, and can hear some gossip, and news about the market.
Just FYI. I never opened a stock exchange market in the crazy Chinese stock market in the last few years. So you know how lazy/stupid/insensitive I am to the money market. Hope this additional disclaimer helps if you still think you should believe in what I tell you. — the other stronger way to say: I am not responsible for any investment made because of this article.