In the last quarter of 2013, the Shanghai government released “Shanghai Seven Articles”, stating that the minimum down-payment ratio for second homes was raised to 70% and non-local homebuyers must provide a proof of minimum two years of taxation and social insurance payments. The release of “Shanghai Seven Articles”, aiming to curb housing demand, had little impact on the luxury residential market whilst significantly dragging down sales in the mass residential market.
The second half of 2013 witnessed a drop of senior-level expatriate relocations in Shanghai, which resulted in dampened demand in the fourth quarter. Several serviced apartments opened in the second half, pushing up the vacancy rate to 7.7% in the fourth quarter. The average rent of luxury homes in Shanghai dropped to RMB178.1 per sqm per month, down 1.1% quarter on quarter.
Source : Knight Frank