Just a Rebound

Everybody loves a good rebound, don't they? According to an article in Chinastakes.com**, the real estate market in Shanghai is experiencing one of its own. Reportedly, during the first two weeks of March, the trading volumes of commercial residential housing hit a 70-week high point, equaling peak levels similar to those in October 2007.

The trading volume has grown 11 percent week-on-week throughout March with average prices up eight percent, according to the Shanghai Youwin Real Estate Research Center. Cuts to tax and interest rates may have something to do with it, as well as government investment in urban development. However one of the largest motivating factors seems to be low housing prices.

Those who were holding out early on are beginning to get in "while the getting is good." Chinastakes notes that the trend so far has been for people to buy for personal use, rather than investment purposes as was the case before, though whether the trend will continue is unknown. The market may experience a continued rise over the next months only to dip back down again. For our sake, let's just hope that this rebound turns into a long-term commitment.