China’s struggling property market is showing signs of recovery following Beijing’s measures to boost the sector, as hundreds of buyers snapped up units in a new luxury residential project in Shanghai.
All 158 units in the third batch of Sunac China Holdings’ One Sino Park were sold out within three hours of the sale starting at 1pm, generating 5.88 billion yuan (US$825.8 million). With the project’s first two phases sold out, the developer has raked in a total of 21.5 billion yuan.
Located in the Dongjiadu area of Huangpu district, the heart of Shanghai’s commercial hub, the flats were priced at 172,000 yuan (US$24,150) per square metre or 40 million yuan per unit. Sunac said there were twice as many buyers as the number of flats on sale.
One Sino Park’s strong performance comes after Beijing unveiled a large-scale stimulus package in late September to support the real estate sector and stimulate demand among homebuyers, who have tightened their purse strings since an industry-wide crisis began in late 2020 following a campaign to rein in debt-laden developers.
Shanghai resident Sun, who did not give his first name, bought a 180-square-metre flat (1,938 sq ft) on the 30th floor, said he was “pleased” to acquire an asset that could “maintain its value”.
“Right now, it doesn’t make sense to hold on to your money; the stock market is not suitable for ‘retail players’ like us, so buying a home is probably the best option at the moment,” he said.