Inadequate supply hits Shanghai’s land deals

The volume and value of land sales in Shanghai fell by double digits in the first nine months of this year amid an inadequate supply, according to a latest research by real estate website Fang.com.

Excluding land designated for public uses or affordable housing, a total of 4.5 million square meters were sold across the city between January and September, down 22.6 percent from the same period a year earlier, Fang.com said in a report.

The transaction value fell 33.7 percent year on year to 92.1 billion yuan (US$15 billion).

"This year's land market should be subdued compared with that of last year," said Li Zongzhou, an analyst at Fang.com. "New land supply will probably remain tight in the last quarter with only five pieces of parcels scheduled for release in October."

However, land plots meant for homes fetched 69 billion yuan during the first three quarters, an annual surge of 10 percent. The rise was attributed to more expensive parcels in downtown sold during the period, Li said.

Parcels for commercial and office uses plunged 70 percent from the same period a year earlier to 23 billion yuan, Fang.com said.