‘cold-snap’ subdues china market

China is in the grip of a property slowdown that is ‘stifling homebuyer enthusiasm’…

The China Daily recently reported that the slowdown was having an impact across the country, with Shanghai being one notable exception.

Backing up this contention is a recent survey conducted by Chinese Central Bank's.  Its first-quarter survey of residents in 50 Chinese cities showed that only 14.6 percent plan to buy homes in the next quarter, down 1.3 percent from last quarter and a 1.9 percent drop year-on-year.

Of the seven big cities surveyed, Shanghai saw the most distinct percentage fall in homebuyers for the next quarter, down to a record-low 4.3 percent. But from a seller's perspective, there are signs the market could be about to warm up again.

Shanghai showing signs of recovery?

According to the China Real Estate Index System, 5,260 commercial apartments were sold in Shanghai from Mar 17 to 23, up 14.37 percent on the previous week, and the sixth consecutive weekly rise.

Zhang Qi, an analyst at the China Real Estate Index System, said. "Property prices in Shanghai have shown signs of recovery this month, as huge demand still exists in the city,"

James Macdonald, senior manager of Savills China Research, added: "The residential market has stayed subdued, with buyers putting off buying properties until the cold snap passes and they have a clearer picture of where the market is going in 2008”.