New home sales more than doubled in Shanghai in March amid increased supply but the city's new housing market is still far from a strong recovery, according to a real estate information firm.

Sales of new homes, excluding those designated for relocated residents under urban redevelopment plans, soared 150 percent from February to 800,000 square meters, Shanghai Uwin Real Estate Information Services Co said yesterday. New home supply more than tripled to 700,000 square meters during the period while the average price remained almost unchanged at a high of 19,767 yuan (US$2,894) per square meter.

"While the monthly increase seemed notable, actually it was the lowest March volume recorded over the past five years," said Lu Qilin, a researcher at Uwin. "A surge in supply certainly helped boost sales in the past month but it will take more time for a major rebound to be seen in the market."

About 1.43 million square meters of new homes were sold in Shanghai in March 2009 when supply reached 1.25 million square meters, according to Uwin statistics.

While the general market has been gaining some strength, the high-end sector has seen an even slower pace of increase.

A total of 19,000 square meters of new residential properties, costing more than 50,000 yuan per square meter, were sold across the city last month, an increase of 12.2 percent from February.

The average transaction price gained 2.8 percent from a month earlier to 71,202 yuan per square meter, Uwin reported.

Two developments in Huamu, Pudong New Area, were best sellers last month by transaction volume.

Seasons Villas by Hutchison Whampoa sold 4,673 square meters, or 14 units, at an average price of 79,357 yuan per square meter while Yanlord Town, a project by Singapore's Yanlord Group, posted sales of 3,485 square meters, or 28 units, at an average.

(Shanghai Daily April 2, 2010)