New data shows that sales were up for Shanghai's luxury property market in the second quarter of the year, according to propertywire.com.
The statistics were taken from Knight Frank's latest Luxury Residential Market Report. It found that the number of sales in the time period were 39.9 per cent higher quarter on quarter. Year on year, sales have also risen by 12.6 per cent.
Considering the rise in sales, it is not that surprising that the data also showed there has been an increase in the supply of new luxury homes in the city. The second quarter saw an increase of 4.3 per cent in supply quarter on quarter, reaching 280,000 square metres.
The news comes as it was revealed this month that prices for properties in China are continuing to rise. It is claimed that house prices rose in 69 out of 70 of its major cities compared to year ago, according to experts.
This may explain why affluent Chinese investors are looking invest in international real estate. It was reported this week by usa.chinadaily.com that investors are searching abroad for high-returns on property as the yuan continues to strengthen. This was according to real estate services firm Jones Lang LaSalle.
It was also claimed that Chinese properties require a down payment of between 30 to 50 per cent, whereas offshore property aquisitions may only need a 25 per cent down payment, which could be another reason behind the trend.
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Author
Samantha Bartlett