Property market slows in Shanghai FTZ

The once heated property market in the Linggang and Waigaoqiao areas favored by the China (Shanghai) Pilot Free Trade Zone is not as dynamic as it was in December 2013, recent statistics released by real estate agencies show.

Statistics provided by the market research department of Century 21 China Real Estate Shanghai show that only 8,000 square meters of new buildings sold in the Lingang area from January to Feb 12 this year, down 5.8% year-on-year. Only 10,000 sq m sold in Waigaoqiao from the beginning of the year, down 38.1% year-on-year, an even sharper decline than the average 36.1% decrease in Shanghai during the same period.

Lingang area is performing a little better as the land is still hotly pursued and the operation of Metro Line 16 facilitates transportation.

Luo Yinshen, assistant manager of the market research department of Century 21 Shanghai, said the areas that benefited from the FTZ have overdrawn those benefits while basic living facilities and industrial structures are still awaiting substantial improvement.

Although transactions look bleak, housing prices in the FTZ concept areas remain high. Most properties saw their prices remain the same in the first two months of the year, while some prices increased a little.

Gong Min, a senior research manager at Shanghai Centaline Property's Shanghai office, said transactions in Waigaoqiao and Lingang have not returned to normal largely because Spring Festival just ended. Thus, the data cannot fully reflect the market's ups and downs.