Shanghai house sales dip but prices rise

Sales of new residential properties in Shanghai fell 22% to 1.62 million square meters in October from September, the Oriental Morning Post reported. It was the fourth consecutive month sales of new homes had declined according to Shanghai Youwin Real Estate Information Service, which said that the new mortgage policy and an inadequate supply of new housing were contributing to the decrease. On September 27, the central bank and the banking regulator announced that people taking out a second mortgage would be required to make a 40% down-payment and pay a minimum of 10% interest. However, the average housing price for new homes kept rising in October, fuelled by luxury apartments and houses valued up to US$4,016 (RMB30,000) per square meter. According to Youwin, the average price for a new residence was US$1,550 (RMB11,577) per square meter in October, up 10% on September.