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The Shanghai Municipal Statistics Bureau says house sales in the city continued to plunge in May. The transaction volume hit a historical low at only 309 thousand square meters.
The volume from January to May this year was maintained at 7.19 million square meters, dropping 32.5 percent year-on-year. The margin of the drop in Shanghai has outstripped other cities. But investors are maintaining their interest in the market, with more than 40.8 billion yuan being invested in the Shanghai housing market, a rise of 46.8 percent year-on-year.
With more property cooling measures expected, analysts predict house transaction volumes will maintain its down spiraling trend for the next couple of months.
Fu Qi, Analyst of Shanghai E-house R&D Institute said "Developers are optimistic in long term, but cautious in the short term towards the Shanghai housing market. In the long run, the demand-over-supply status will maintain unchanged."