Economy

Home sales slump in Shanghai on cooling measures

(Xinhua)
Updated: 2011-02-19 17:47

SHANGHAI - The sales of commercial homes in 2010 fell 42.4 percent from that in 2009 in Shanghai after authorities moved to cool down the property market.

Commercial housing sales dropped to 16.9 million square meters in 2010, according to a statement released Friday by the Shanghai Municipal Bureau of Statistics.

The speculative demand in the real estate market had been effectively curbed after the central and local governments unveiled tightening measures, which include home purchase restrictions, higher down payments and lending rate hikes, the statement said.

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The average price of new commercial homes rose by 7.6 percent to 20,995 yuan ($3,200)?a square meter last year. Further, the property investment in the country's financial and business centers jumped 35.3 percent to 198 billion yuan last year, the statement stated.

The investment in low-cost public housing surged 72.3 percent to 33.5 billion yuan as the government sought to provide affordable housing for more people. Sales of affordable public housing rose 15.4 percent to 7.35 million square meters last year.