THE number of residential property projects offering discounts may fall in Shanghai in March, as recovering sentiment among buyers has boosted market confidence among developers.

Some 175 developments, comprising apartments and villas, will offer discounts next month, compared to 189 this month and 204 in March 2012, according to a latest research released by Soufun.com, which operates China's largest real estate website.

However, large numbers of developers are still offering deals in order to shift stock.

"While some developers are reducing discounts amid improving market sentiment, the majority of home builders still seem to be keen to unload their inventories as austerity measures to curb housing speculation remain unchanged," said Xia Junqing, a Soufun analyst.

"Moreover, March is traditionally a time when home purchases pick up as the Spring Festival holiday ends and the weather becomes warmer."

A residential project by Sino Horizon Holdings Ltd in outlying Jiading District, scheduled to release more than 300 apartments for sale late next month, is among those still offering promotions in a bid to get the year off to a good start.

"We're going to offer some promotions, though feedback from the market is already quite positive," said Zhou Zhigang, a sales person at the project.

Zhou did not say what these promotions might involve.

"Despite home purchase restrictions, we still see robust demand from owner-occupiers, and 70 percent of people showing interest to buy here are local Jiading residents," added Zhou.
Across the city, Pudong New Area leads with 40 projects providing discounts.

More than 73 percent of developments offering price cuts are located beyond the Outer Ring Road.