Sales of both first and second-hand homes in Shanghai continued to be strong in the first half of this month, with high-end homes highly sought after among buyers.

Nearly 1.02 million square meters of new homes, excluding those designated for relocated residents due to urban redevelopment projects, were sold across the city during the first 15 days of June, an increase of 12 percent from the same period a month earlier, Shanghai Uwin Real Estate Information Services Co said yesterday.

"While overall sentiment continued to be strong, demand for high-end homes, priced above 30,000 yuan (US$4,392) per square meter, become even more robust," said Lu Qilin, a researcher at Uwin.

According to Uwin, 58,100 square meters of high-end homes changed hands in Shanghai at an average price of 44,299 yuan per square meter between June 1 and 15.

That compared to 57,300 square meters of such homes sold at 40,635 yuan per square meter in the same period a month earlier.

More individual buyers from overseas are entering the market, said Uwin. Purchases by overseas buyers rose to 10 percent of the total in May from 6 percent in April.

Research released yesterday by E-House (China) Holdings Ltd showed transactions of luxury homes with a price tag of more than 40,000 yuan per square meter rose 51 percent to 107 units during the first 15 days of the month.

The second-hand market also grew.

"We've noticed a 15-percent growth in the sale of used homes in the first half of this month," said Chi Shengyu, an analyst at the local second-hand housing index compiler's office.

"There has been a notable increase in the sale of high-end houses, which includes old villas with a price tag of more than 30 million yuan, as well as luxury apartments costing between 6 million and 8 million yuan."

Century 21 China Real Estate said used apartments costing 2 million to 5 million yuan were also selling faster in the first half of June.

(Shanghai Daily June 17, 2009)