Linda Wang, 30, from Shanghai, bought a new 186-square-meter home in central Shanghai’s Xuhui district for 26.4 million yuan (US$3.7 million) on August 29 after selling two apartments with her family a year ago.
It was Wang’s third home purchase in the city, emblematic of a new trend among the ultra-rich to snap up luxury apartments in the hope that a shortage of prime locations in first-tier cities will help them protect their wealth despite a national property slump.
Xuhui’s home was one of 120 listed for sale on Auant that day, with an average price of 26.6 million yuan each, but they were all sold within 30 minutes of going on sale.
“At the moment, there aren’t many investment options,” Wang says. “Ideally a home in the city center, but otherwise it’s hard to know where to invest without risking a decline in value. The housing market has corrected over the past few years and current prices are quite attractive, especially for new homes.”
A 40-year-old financial professional, who asked not to be identified to protect his privacy, also bought the apartment for himself in anticipation of future price increases. He pointed to the apartment’s prime location, surrounded by tech companies in Shanghai’s central business district.