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Cailianshe News, August 12 (Reporter Wang Haichun)Another high-end residential project in Shanghai achieved oversubscription.

Reporters learned from Sunac that the second batch of 110 units in Phase II of The Bund One Courtyard, a luxury housing project developed by Sunac in Shanghai, has recently completed subscriptions. The unit price of this batch is about 171,000 yuan per square meter, an increase of 3,000 yuan per square meter from the average price of the previous batch. The average total price per unit is about 51.5 million yuan.

During the interview, the reporter learned that the project has attracted more than 200 groups of potential customers for the 110 houses launched for sale, with a subscription rate of 183%, an increase of 13 percentage points from the previous batch's subscription rate of 170%. Based on this calculation, the total sales amount of this batch of houses is expected to exceed 5.6 billion yuan.

Public information shows that the first batch of houses in the second phase of Sunac Bund One Courtyard were launched on April 21 and were sold out on the same day with sales of 9.997 billion yuan.

"Based on the current subscription situation, this batch of houses may be sold out at once. We hope that this project can boost the company's sales performance." said a person close to Sunac.

It is worth noting that since the beginning of this year, the performance of luxury housing projects in Shanghai has been quite eye-catching.

On March 28 this year, China Overseas Shunchang Jiuli, located in the Xintiandi area of ​​Shanghai, was launched for sale, and its sales of 19.65 billion yuan set a new national record for launches; the Riverside Arc de Triomphe, located on the south side of Lujiazui, was launched for sale on April 18, and all 212 units were sold out on the same day, earning 7.027 billion yuan; the 75 units of CapitaLand Maoming Mansion were sold out in less than an hour after the launch on May 6, with sales exceeding 3.1 billion yuan.

According to data from Jones Lang LaSalle, 1,786 high-end residential properties were sold in Shanghai in the second quarter of this year, up 71.6% from the previous month. On the supply side, the supply of high-end residential projects in Shanghai increased significantly in the first half of this year.

Regarding how to define luxury homes, a senior executive of an international real estate agency told reporters that there is currently no clear definition of luxury homes in the market, and the definition standards for luxury homes in different cities are not exactly the same. In Shanghai, the industry often considers aspects such as total price, unit price, the quality of the project itself and the region in which it is located.

"First of all, the total price. A single house with a total price of more than 20 million yuan is often called a luxury house. Some industry insiders also believe that the threshold of 20 million yuan may be slightly low, and only houses with a total price of more than 50 million yuan should be classified as luxury houses; but at present, the threshold of 20 million yuan in total price is recognized by many peers. In terms of unit price, the unit price is often higher, and the selling price must be at least 100,000 yuan per square meter. In addition, from the location of the project, as far as Shanghai is concerned, luxury houses generally need to be within the inner ring; however, some high-quality real estate projects or villas with special endowments can ignore this condition of being within the inner ring." The above-mentioned senior executive of the international real estate agency said in an interview with reporters.

"In the first half of this year, 4,804 high-end residential units were launched on the market in Shanghai." Xu Menglu, assistant director of market research at Savills China, said that under the background of strict price controls in the past three years, the prices of luxury homes launched on the market in the first half of the year showed a more obvious compensatory rise, and the price ceiling is gradually being broken.

According to data from Savills, in the first half of 2024, there were 158 style villa projects launched in Shanghai, with an average market price of around 243,000 yuan/square meter to 298,000 yuan/square meter, and the main total price range was around 70 million yuan to 160 million yuan.

In terms of regions, many luxury housing projects are located in core urban areas such as Xintiandi, Yuyuan Garden, North Bund and Suhewan.

Specifically, institutional statistics show that the Hong'anli project, which was launched in January and March this year, has a unit price of about 243,000 yuan/square meter, and the total price range is between 55 million yuan and 165 million yuan; the Tiantong 198 project, which was launched at the end of April this year, has 15 units on the market in the first half of the year, with a unit price of 288,000 yuan/square meter, and a total price range of about 150 million yuan to 260 million yuan; and the Luxiangyuan Yunchen project, which was launched at the end of June, has a unit price of 280,000 yuan/square meter, and a total price range of about 110 million yuan to 170 million yuan.

"Luxury home transactions are relatively active this year. There may be several reasons for this. First, the supply has increased significantly. Second, the regulatory authorities have imposed restrictions on new home prices, resulting in new homes being sold at lower prices than surrounding second-hand homes, creating a certain price difference. Thirdly, some projects are scarce, and some buyers believe that they have strong value preservation and appreciation functions." said an analyst from a foreign consulting firm.

Table source: Savills Table data source: CRIC

It is worth noting that although the sales of some high-end residential projects in Shanghai are good, many analysts pointed out that many high-end residential projects this year have "said goodbye" to the points system.

"As the real estate market continues to adjust, the overall transaction enthusiasm has declined, the market is severely divided, and the peripheral areas continue to be under pressure. Only a small number of sectors can maintain the enthusiasm, but high-quality projects in the urban area are still sought after. After Shanghai introduced new policies, the enthusiasm of this market segment has increased. However, in 2024, the number of new housing projects that trigger the points rate will continue to remain low, buyers will tend to be calm, and there are not many projects on the market that trigger the points system." Xu Menglu said.

Table source: Savills Table data source: CRIC