Forecast about Shanghai’s Real Estate Market in 2017 and Suggestions about Regulation

[Abstract]

Although the government introduced regulation three times in 2016 and the enthusiasm in Shanghai’s house market somewhat waned at the end of the year, market expectation for price rise hasn’t been fundamentally changed and developers are still crazy about land purchase. In 2016, the average trading price of newly-built commodity houses in Shanghai went up by 18% year-on-year, and the price of second-hand houses rose by 49%; the sales of newly-built commodity houses reached RMB669.6 billion, up 32% year-on-year, and real estate investment amounted to RMB370.9 billion, up 6.90% year-on-year.