Too much property in Shanghai market
21 March 2007
The Shanghai real estate market could be oversupplied by 2010, according
to new research. The Shanghai Academy of Social Sciences said in a new
paper that the excessive number of approvals for residential properties
during the 10th Five-Year Program could dwarf demand, the South China Morning Post
reported. The paper, first published in state media, notes demand would
also be affected by high prices and increasing controls on property
transactions. Between 2001-2005, the city government approved the
development of 323.51 million square meters of land, nearly doubling the
total existing developed land in 2000. The researchers say
pressure will be particularly high in the city's outskirts, where 81% of
projects approved between 2003-2005 are located.