China’s ultra-rich are snatching up luxury homes in bet on first-tier cities
Wealthy homebuyers see opportunity for flats in prime downtown areas after recent market correction, according to sales data
Linda Wang, a 30-year-old Shanghai native, bought a 186-square metre new home in the city’s downtown Xuhui district at 26.4 million yuan (US$3.7 million) on August 29, after she and her family sold two other flats a year ago.
Wang, whose latest purchase is her third home in the city, represents a new trend among ultra-rich homebuyers who are snapping up luxury flats despite a national property downturn, in the hope that the scarcity of properties in prime neighbourhoods of first-tier cities can help protect their assets.
The Xuhui home was one of 120 units on offer that day at Auant, with an average price of 26.6 million yuan per flat, all of which were snapped up within 30 minutes of launching.
“At present, you really don’t have many options for investment,” said Wang. “A downtown house is the desired one, otherwise I don’t know where to allocate my assets without them depreciating. The housing market has corrected for several years and current prices are attractive enough, especially for new homes.”
A 40-year-old finance professional, who declined to be named for privacy reasons, also bought a unit for own use, banking on its future price appreciation. He pointed to the prime location of the flats, which are surrounded by hi-tech companies in Shanghai’s central business district.
