.Shanghai Residential Market Q1 Market.pdfVIP

Shanghai Q1 2006 Residential Property Times Contents 01 Market Overview 02Luxury Residential Leasing Market 06 Primary Residential Market 08 Investment Market Market Overview In Q1 2006, the occupancy rate of many properties in the Shanghai luxury residential leasing sector dropped 20061 slightly, partly due to the impact of the Chinese Luna New Year Holidays. Consequently, the luxury residential rental index declined moderately as a result of the fall in leasing demand. 20055 Meanwhile, in the sales sector, the market continued to 200614 exhibit contracted sales transactions and mildly receding prices. This was mainly due to the impact of 2006 the Governments macro-control policies over 2005 such as the collection of full business tax on property sales. However, after a one-year adjustment, the sales prices of luxury residential edged down to a more rational level. This motivated many buyers to change from a wait and see attitude to actively looking for quality properties after the spring festival. This has resulted in the market picking up a bit in March 2006. DTZ IndexResidential Rent Price, Shanghai Residential Rent Residential Price 140 ) 0 0 1 = 120 1 Q 0 0 0 2 80 ( x e 40 d n I 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 01 Forecast In