The Shanghai government has vowed to allot another 1,200 hectares for new residential development later this year raising total supply to 1,600 for the whole of 2009 in response to less affordable housing prices, mayor Han Zheng said Tuesday. Last year 700 hectares were supplied. Trading of residences in Shanghai rose 10.3% week-on-week to 385,100 m2 and price per m2 jumped 18.5% to a weekly high of ¥19,603 on average from August 10 to 16, according to E-House China Holdings (NYSE: EJ). Surge in purchase of luxury apartments, such as Thompson Riviera, Lakeville Regency, and Star River, was behind the increasing figures. E-House China analyst Xue Jianxiong has predicted the price will go beyond ¥20,000/m2 soon.
$1 = ¥6.8