The move is driven by rich Chinese — many dwelling in the Yangtze River Delta region that Shanghai is part of — who are parking their money only in sure-fire investments. The recent buyers still see luxury residences as an optimal choice, given Shanghai’s financial hub status, the scarcity of supply of such dwellings and the discount that new offerings boast compared with existing ones.
A US$15 million ($20.29 million) penthouse was snapped up hours after it went on sale. More than 200 homes priced from nearly US$5 million were taken in less than a day. Apartments worth US$3.8 million were five times oversubscribed.
Shanghai’s luxury real estate market is a bright spot in China’s bleak property sector. It is the only one among the country’s mega cities that’s still attracting people to put down money in an asset class that has otherwise been abandoned.
