China's property boom is back with a vengeance! After many government measures to support the housing market, there has been a dramatic rise in transactions and prices. High-profile cities like Shenzhen, Guangzhou and Shanghai have led with significant price-rises.
In Shanghai, the price index of second-hand houses rose by 8.31% (6.9% inflation-adjusted) during the year to October 2015, in contrast to a y-o-y decline of 0.17% (-1.84% inflation-adjusted) the previous year, based on figures from Ehomeday.
This was supported by recent data released by Colliers International, which showed that the average sales price of new houses in Shanghai rose by 18.6% to CNY31,844 (US$4,930) per square meter (sq. m.) in Q3 2015 from a year earlier, but unchanged from the previous quarter, buoyed by strong demand for high-end or luxury properties. The area between the inner ring road and the middle ring road saw the biggest increase in house prices.