Shanghai villa sells for $46m

Source : Straits Times - 19 Mar 2009

A SHANGHAI villa has sold for 205 million yuan, or US$30 million (S$45.9 million), in the most costly residential real estate deal yet for mainland China, the property’s developer said on Wednesday.

Shimao said the 205 million yuan deal was the costliest so far for a mainland Chinese residential unit. –PHOTO: Shanghai Shimao Sheshan Villas

But despite the stunning size of the transaction, the outlook for the market remains murky, those working in the industry say.

Shimao Property Holdings would not disclose any details about the identity of the buyer of the fully furnished, 4,000 sq m villa at its Shanghai Shimao Sheshan Villas development.

A staff at Shimao’s investor relations department confirmed the deal but would not comment on a South China Morning Post report saying the buyer was not a mainland Chinese passport holder.

Another villa at Shimao Sheshan, a scenic area in Shanghai’s western suburbs, sold for 155 million yuan.

Shimao said the 205 million yuan deal was the costliest so far for a mainland Chinese residential unit. But at 51,000 yuan, or US$7,500 (S$11,500), per sq m, it was less expensive than homes in downtown Shanghai’s Tomson Riviera, a luxury complex where a smaller, but still spacious, apartment sold earlier for 130,000 yuan, or more than US$19,000, per sq m.

Although the villa’s price is astronomical by Chinese standards, it is way below the most expensive in the world. The most expensive market, according to Global Property Guide’s 2009 list, is Monte Carlo, averaging US$45,000 per sq m.