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In the second half of the year, the high-end residential market in Shanghai continued to remain hot. On August 17, two luxury residential projects in Shanghai were sold out as soon as they were launched, and the "sunlight sales" reappeared.

Two luxury housing projects were launched in one day

On August 17, the second batch of Phase II of The Bund One Courtyard, located in the core area of ​​Huangpu District, Shanghai, was launched for sale. The total transaction amount on that day reached 5.674 billion yuan, and the sales rate was as high as 100%.

Public information shows that on April 21 this year, the second phase of the Bund One Courtyard was launched for the first time, with a sales rate of 100% and a total transaction amount of 9.997 billion yuan. This time, the second batch of 110 units were launched and once again achieved "sunlight".

According to Sunac's official microblog, the second phase of the Bund One Courtyard project has been sold out after two launches, with a total transaction amount of 15.6 billion yuan. After the second batch of houses are sold out, the second phase of the Bund One Courtyard will be launched again in the golden autumn.

According to the announcement of the pre-sale housing of "The Bund One Phase II" (registered name is Yunzhu Yayuan), the project is located in the Dongjiadu section of Huangpu District, Shanghai. A total of 110 housing units are launched this time, with an average price of 171,000 yuan/square meter. The unit area ranges from about 255 square meters to 500 square meters, and the average total price of each unit is about 51.58 million yuan.

According to the project public information, the project attracted 201 groups of potential subscribers to sign letters of intent to purchase. After review by relevant government departments, a total of 197 groups of potential subscribers met the Shanghai housing purchase restriction and other real estate market regulation policies and commodity housing sales management regulations. The project was originally scheduled to be launched on August 24. Because the ratio of the total number of subscription registration groups to the number of units available for sale was less than 2.5:1, no scoring and sorting was performed, and the launch time was advanced to August 17.

However, although the scoring sorting was not triggered, the second batch was still sold out on the same day with sales of 5.674 billion yuan.

On the same day, Yuexiu Suhe Heyue Mansion (Sudi Yayuan) in Putuo District, Shanghai, was also sold out as soon as it was launched, with a cumulative sales amount of 1.735 billion yuan. The project sales announcement showed that a total of 124 units were launched this time, with an average sales price of 103,570 yuan per square meter. The project attracted a total of 356 groups of potential subscribers to sign letters of intent to purchase, with a subscription rate of about 280%, of which 312 groups of potential subscribers met the relevant regulatory policies and reached the qualifying score of 54.56 points.

Lu Wenxi, a market analyst at Shanghai Centaline Property, believes that the current period is a period of relatively active demand for mid- to high-end improvements, especially with the policy push, multiple housing tickets for families with multiple children, and low loan interest rates, and the policy is very friendly. The two projects in the "sunlight" are located in popular areas. There has been no new supply in the Putuo Changfeng area, and there is little supply in the Huangpu Riverside area, so the market attention is generally high.

Why is there so much "sunlight" in the luxury housing market?

"Shanghai's real estate market has developed an independent trend in the national market. Both the July housing price data of 70 cities announced by the National Bureau of Statistics and the recent transaction volume are remarkable. This is mainly due to the effective release of potential purchasing power in the market after the relaxation of Shanghai policies after 517. At the same time, the recent increase in the heat of Shanghai's land market has played a huge role in improving market trading sentiment." said Zhang Bo, director of the 58 Anjuke Research Institute.

Data from the National Bureau of Statistics showed that in July, Shanghai continued the market trends of June, with both new and second-hand housing prices rising month-on-month. Among them, new home prices have continued to grow month-on-month since June 2022, and have risen month-on-month for 26 consecutive months; the growth rate of second-hand housing has led for two consecutive months, and Shanghai is also the only city where second-hand housing prices rose month-on-month in July.

The performance is even more obvious in the luxury housing market. With the continuous supply of high-end residential properties, many luxury housing projects have been sold out since March this year, including "Greentown Bund Lanting" in Huangpu District, "Riverside Arc de Triomphe" in Lujiazui, "CapitaLand Maoming Residence" in Huaihai Middle Road section of Huangpu District, and "Hong Kong Land Kaiyuan" in Xuhui Binjiang section.

Zhang Bo, director of the 58 Anjuke Research Institute, told The Paper that from the perspective of the new home market in Shanghai, although the price and volume performance in hot first- and second-tier cities is significantly better than the average level, the market differentiation is still high. At present, high-quality new homes in high-quality locations in the city are still receiving full attention from the market. On the one hand, the phenomenon of upside-down between first-hand and second-hand homes in some mid- to high-end projects in the city still exists, especially in high-end residential properties, which is also caused by the price limit of new homes. On the other hand, the improvement demand in the current Shanghai market, especially the mid- to high-end improvement demand, has a stronger confidence in entering the market, and the high-quality second-hand homes are more resistant to price drops in the market, which further strengthens the confidence of improvement demand to enter the market.

Judging from the data from Anjuke's online platform, the squeezing effect of second-hand houses in mid- to high-end projects on new houses is smaller. In other words, the substitutability of second-hand houses in mid- to high-end new projects is relatively weaker. It can be seen from the relevant report released by 58 Anjuke Research Institute in July that among the 46 cities, the squeezing coefficient of second-hand houses in 31 cities increased compared with June. The second-hand housing market in Shanghai showed a medium-intensity squeezing trend, with the squeezing coefficient rising to 0.48, an increase of 0.13 compared with June. This was mainly due to the new policies launched on May 27, including relaxing the restrictions on non-Shanghai singles buying houses to second-hand houses within the outer ring road, encouraging enterprises to purchase small-sized second-hand houses, and preferential policies for families with many children. The first low-priced new projects have a greater impact, while the squeeze on mid- to high-end improvement projects has been reduced.

Looking at the market from a broader perspective, the luxury home transaction market in key cities has remained hot in recent years. According to monitoring data from the third-party research institution E-House Research Institute, an analysis of new home projects with a total price of RMB 20 million or more in Beijing, Shanghai and Shenzhen showed that the number of luxury home transactions in the first seven months of the calendar year 2019-2024 in the three cities was 2,371, 2,275, 3,397, 4,085, 3,795 and 4,418, respectively. Luxury home transactions have reached a new high, which also shows that luxury home transactions have been active in the past five years.

According to data from the first seven months of this year, the total number of transactions in new housing projects with a total price of 20 million yuan or more in Beijing, Shanghai and Shenzhen was 4,418, an increase of 16.4% year-on-year; compared with the first seven months of 2020, it increased by about 94.2%.

The report released by the E-House Real Estate Research Institute shows that the hot transactions of luxury homes in big cities are related to three reasons: First, the risk aversion sentiment of funds is strong. The scarcity of luxury homes in big cities, the space for value preservation and appreciation, and the satisfaction of improved living needs have attracted more funds to enter. Second, compared with the hot transactions of luxury homes in 2020, the current mentality of luxury home developers is calmer, with fewer hoarding mentality, and a heavier mentality of sprinting and accelerating project clearance. Third, compared with the high threshold for luxury home subscriptions during the period of house price inversion in 2023, the current subscription threshold has been significantly lowered, and high-threshold regulations such as "points" and "lottery" have been significantly reduced.

Yan Yuejin, deputy director of Shanghai E-House Real Estate Research Institute, said that among first-tier cities, the phenomenon of "sunlight" of luxury homes in Shanghai is the most obvious this year. The hot transactions of luxury homes in big cities have played a very good market-leading role and further confirmed the positive trend of the real estate market. At the same time, the faster sales of luxury homes will also help real estate companies to speed up the recovery of funds and improve cash flow.