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The popularity of high-end real estate in Shanghai continued into the second half of the year.

On August 17, the second batch of Phase II of The Bund One, located in the core area of ​​Huangpu District, Shanghai, was launched for sale. A total of 110 units were launched with an average price of 171,000 yuan per square meter. All units were sold out on the same day, with a total transaction amount of 5.674 billion yuan.

On the same day, Yuexiu Suhe Heyue Mansion (Sudi Yayuan) in Shanghai's Putuo District also sold out immediately after its launch, with cumulative sales of 1.735 billion yuan. The project launched a total of 124 units, with an average sales price of 103,570 yuan per square meter.

Two high-end residential properties with a unit price of "100,000+" have once again ignited the Shanghai property market. As Shanghai has ranked first in the country in terms of month-on-month growth in housing price index for five consecutive months, what is the source of the "recovery power" of the property market? How long can the popularity of high-end residential properties last?

Supply surges, high-end disks continue to be hot

On August 17, on the third floor of the Langham Hotel, Shanghai Xintiandi, in front of the red railing that read "The World Coordinates Return to the Bund", 200 groups of potential customers were waiting for the lottery to select their rooms with a price list for each room. In less than two hours, all the rooms with an average total price of over 50 million yuan were sold out.

That afternoon, Sunac’s official Weibo account announced that the second batch of Phase II of Shanghai Bund One Courtyard was sold out as soon as it was launched. The total transaction amount on that day reached 5.674 billion yuan, and the sales rate reached 100%.

This time, Shanghai Bund No. 1 launched a total of 110 housing units, with an average price of 171,000 yuan per square meter. The unit areas range from 255 to 500 square meters, and the average total price is about 51.58 million yuan.

It is reported that the 110 housing units attracted more than 200 groups of potential customers, with a subscription rate of 180%, which is 13 percentage points higher than the 170% subscription rate of the first batch.

It is worth mentioning that the unit price of the second batch of houses in Phase II of Shanghai Bund One is about 171,000 yuan/square meter, which is 3,000 yuan/square meter higher than the average price of 168,000 yuan/square meter of the previous batch. The most expensive house this time is sold for about 113 million yuan.

At present, the second phase of Shanghai Bund One Courtyard has been sold out twice, with a cumulative transaction amount of 15.6 billion yuan. Sunac said that after the second batch of houses are sold out, the second phase of Shanghai Bund One Courtyard will be launched again in the golden autumn.

On the same day, Yuexiu Suhe Heyue Mansion (Sudi Yayuan) in Shanghai's Putuo District also sold out immediately after its launch, with cumulative sales of 1.735 billion yuan. The project's 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%.

In addition, the Beijing News reporter learned that "Jinyuan", a major urban renewal project located in the core area of ​​Shanghai's Old Town and jointly created by Xinhu, Sunac and CITIC, is also currently in the process of hot subscription.

Looking back at the first half of this year, high-end residential properties have become the absolute protagonist of the Shanghai property market. According to CRIC data, in the first half of this year, a total of 1,544 houses with a total price of more than 30 million yuan were sold in Shanghai, setting a record high in the past decade. At the same time, according to statistics from China Index Academy, as of August 18 this year, a total of 2,461 high-end residential properties with a total price of more than 25 million yuan were sold.

At the beginning of the second half of the year, the supply and demand of high-end real estate projects are both strong and the popularity continues. It is reported that there are currently 64 real estate projects with a total price of more than 30 million yuan in the central area of ​​Shanghai, and 12 real estate projects were in the stage of subscription or opening in early August alone, of which 7 real estate projects had an average unit price of more than 100,000 yuan, including popular real estate projects such as Qiantan Lily Garden, Sunac Bund One Courtyard and Zhonghai Lingdi Jiuxu. It is the blowout of the supply chain that has kept the popularity of high-end real estate projects unabated.

Lu Wenxi, senior analyst at Shanghai Centaline Property, said: "Shanghai is now experiencing relatively active demand for mid- to high-end improvements, and the Shanghai land market has resumed the 'highest bidder wins' policy. The better and more scarce the land, the more expected the price will rise in the future, and the more popular it will be in the market."

At the same time, a report released by the E-House Real Estate Research Institute also 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, and the scarcity of luxury homes in big cities, their room for value preservation and appreciation, and their satisfaction of improved living needs have attracted more funds to enter; second, compared with the hot transactions of luxury homes in 2020, the current real estate companies developing luxury home projects have a calmer mentality, with less hoarding mentality, and a stronger 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.

It has been three months since the "May 17 New Policy" was implemented, and the replacement chain has gradually opened up

Looking across the country, the performance of Shanghai's housing prices this year can be described as "unique."

Data from the National Bureau of Statistics showed that in July, Shanghai continued the market trends of June, with the prices of new and second-hand houses increasing by 0.2% and 0.1% month-on-month respectively. Among them, new home prices have continued to grow month-on-month since June 2022, and have increased month-on-month for 26 consecutive months, and the new home price index has ranked first in the country in terms of month-on-month growth for five consecutive months; the growth rate of second-hand houses has also led the way for two consecutive months. At the same time, Shanghai was the only city where second-hand home prices rose month-on-month in July.

The overall rise in Shanghai housing prices is closely related to the sales of high-end improvement housing projects. "First, the fundamentals of the Shanghai housing market are still advantageous. In addition, the new housing products are improving. This wave is mainly for improvement-oriented housing purchases. More improvement-oriented demand is willing to buy new houses, and the prices of new houses are still rising," said Lu Wenxi.

However, the other side of the new housing boom is the cold reception of housing projects in the far suburbs. According to incomplete statistics, from July to August 2024, of the 29 new housing projects launched in Shanghai, only 9 had a subscription rate of over 100%, of which 5 were housing projects with a unit price of over 100,000 yuan; there were 10 projects with a subscription rate of less than 20%, all of which were located in the far suburbs, with Chongming, Jinshan, Fengxian and Songjiang being the "hardest hit areas".

In addition, the prices of second-hand houses in Shanghai increased slightly in June and July, which is also a feature of the transition of Shanghai's second-hand housing market from "price for volume" to "increase in both volume and price" after the "May 17 New Policy".

According to statistics from the China Index Academy, since the implementation of the "May 17" new policy, the second-hand housing transaction volumes in Shanghai in May, June and July were 16,631, 23,444 and 17,792 respectively, with a particularly obvious "small peak" in transactions in June.

"The chain of new and second-hand houses in Shanghai is now connected. Second-hand houses are sold to buy new ones, and the sales speed for basic needs is still very fast. The transaction cycle is shortening. New houses are traded actively in the price range of 3 million to 5 million yuan, which in turn has led to a gradual increase in transactions for houses with a total price of 5 million to 7 million yuan. The replacement chain is being driven step by step, and the transaction structure is also changing." Lu Wenxi analyzed.

Beijing News reporter Xu Qian

Edited by Yang Juanjuan, proofread by Wang Xin