According to the data issued by Shanghai Real Estate Trading Center, in May this year purchases of new residential houses in Shanghai amounted to 1.426 million square meters, up 14.7 percent month on month and rising by 139.4 percent year on year, with an average transaction price of RMB 31,832/square meter ($5,134.2/square meter), up 8.2 percent month on month and rising by 15.4 percent year on year.
Meanwhile, the Beijing Municipal Commission of Housing and Urban-Rural Development has indicated that in May purchases of new residential houses in Beijing totaled 795,300 square meters, up 18.3 percent month on month and rising by 44.76 percent year on year, with an average transaction price of RMB 27,235/square meter ($4,392.7/square meter), up 4.11 percent month on month while rising by 12.93 percent year on year.
Separately, Wang Baojie, an official at Hunan Province-based Chinese steelmaker Valin LY Steel Co. stated in a meeting with investors that the rebound in the real estate market will exert a positive impact on the steel market. Meanwhile, the trend of raw material prices, including prices of iron ore and coal, is expected to have a strong influence on the company's profitability. He said the company plans to upgrade its steel business and invest more in mining resources to improve profitability.