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SHANGHAI: Home prices in Shanghai are expected to fall slowly rather than sharply following the government's fresh austerity measures, according to real estate firm Jones Lang LaSalle.
The city's housing prices will come down less than 5% this year because major developers are not under pressure to reduce prices.
"Developers have either come close to meeting full-year sales targets or are on track to meet the targets," said Anthony Couse, managing director of Jones Lang LaSalle Shanghai. "They are not necessarily under pressure to lower prices."
He said transaction volumes would be relatively low until the end of the year.
During the week-long National Day holiday from Oct 1, the Shanghai government unveiled a series of new policies to curb soaring home prices, in line with Beijing's directives. A household in Shanghai can now buy only one new or second-hand apartment, for instance.
Shanghai mayor Han Zheng said over the weekend that the city government would continue to cool the market to protect people's interests.
It has been suggested that Shanghai may start imposing a property tax next year in a move to curb prices. Local media have reported that Shanghai is poised to spearhead moves across the mainland to implement property taxes.
Asked whether the city would impose a 0.3% to 0.4% property tax as reported by newspapers, the mayor said his government would follow Beijing's directives, without elaborating. "We don't anticipate any loosening of policies in the foreseeable future," said Couse. "The government will remain focused on curbing the market."
Michael Kalibaner, head of Jones Lang's China research, said more policies were in the pipeline.
The central government began taking steps to cool the property market in April amid worries about an asset bubble. But home prices continued to rise, prompting the central government to take further action.
In September, Beijing started a new round of curbs, hoping to stop home prices rising further.
In Shanghai, the city government unveiled detailed policies for curbing the housing market at the end of the "golden week" holiday, a move to dent investors' interest in buying.
The National Day holiday is usually a high season for the housing market as residents have time to check apartments they are interested in buying. — South China Morning Post
The city's housing prices will come down less than 5% this year because major developers are not under pressure to reduce prices.
"Developers have either come close to meeting full-year sales targets or are on track to meet the targets," said Anthony Couse, managing director of Jones Lang LaSalle Shanghai. "They are not necessarily under pressure to lower prices."
He said transaction volumes would be relatively low until the end of the year.
During the week-long National Day holiday from Oct 1, the Shanghai government unveiled a series of new policies to curb soaring home prices, in line with Beijing's directives. A household in Shanghai can now buy only one new or second-hand apartment, for instance.
Shanghai mayor Han Zheng said over the weekend that the city government would continue to cool the market to protect people's interests.
It has been suggested that Shanghai may start imposing a property tax next year in a move to curb prices. Local media have reported that Shanghai is poised to spearhead moves across the mainland to implement property taxes.
Asked whether the city would impose a 0.3% to 0.4% property tax as reported by newspapers, the mayor said his government would follow Beijing's directives, without elaborating. "We don't anticipate any loosening of policies in the foreseeable future," said Couse. "The government will remain focused on curbing the market."
Michael Kalibaner, head of Jones Lang's China research, said more policies were in the pipeline.
The central government began taking steps to cool the property market in April amid worries about an asset bubble. But home prices continued to rise, prompting the central government to take further action.
In September, Beijing started a new round of curbs, hoping to stop home prices rising further.
In Shanghai, the city government unveiled detailed policies for curbing the housing market at the end of the "golden week" holiday, a move to dent investors' interest in buying.
The National Day holiday is usually a high season for the housing market as residents have time to check apartments they are interested in buying. — South China Morning Post
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