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Recovery in housing stirs hopes

    Home buyers and real estate developers’ hopes were raised last week following a recovery in the market after the Spring Festival holiday.

    The area of new homes sold, excluding government-subsidized affordable housing, jumped 175.2 percent from the previous week to about 71,000 square meters during the seven-day period ending on Sunday, according to a report released today by Shanghai Centaline Property Consultants Co.

    The city’s outlying Jiading District transacted around 16,000 square meters of new homes last week. It was closely trailed by the remote districts of Chongming and Qingpu, where sales both stayed below the 10,000-square-meter threshold.

    “The market seemed to be well on its track to recover and we can expect a major rebound in both sales and supply this month if momentum is maintained,” said Lu Wenxi, senior manager of research at Centaline. “On the policy side, we don’t anticipate further tightening at least in the near term.”

    The average cost of the new homes rose 15 percent week on week to 44,423 yuan (US$7,010) per square meter, Centaline data showed.

    Last week’s top four best-selling projects all sold for under 40,000 yuan per square meter and only one out of the 10 most popular developments costs over 50,000 yuan per square meter.

    A residential project by Tahoe Group on Changxing Island in Chongming District remained the most sought-after development after selling 8,242 square meters, or 75 units, for an average 30,437 yuan per square meter.

    Two projects with 75,000 square meters of new houses were launched for sale last week, up 57.4 percent weekly, according to Centaline data.