Sales of pre-occupied homes rose moderately in Shanghai last month but were still below the 20,000-unit level, while prices remained generally stable.
Around 11,600 pre-owned homes changed hands in November, a month-on-month gain of 7.7 percent, according to data released yesterday by Shanghai Centaline Property Consultants Co. But the gain represented a plunge of 42.4 percent year on year.
"The figure was still far below the 20,000-unit threshold that is often viewed as a normal monthly volume for the city," said Lu Wenxi, senior manager of research at Shanghai Centaline. "As sentiment among home seekers continued to be sluggish, we are beginning to see larger price discounts, like a 10 percent cut offered by some owners of properties that cost more than 10 million yuan (US.5 million) which was quite rare a few months ago."
Meanwhile, the city's existing housing index, which tracks month-over-month price changes in 130 areas, added 0.11 percent from October to 3,996 in November, Shanghai Existing House Index Office said in a separate report released yesterday.
Prices of pre-owned homes rose in 55 areas, fell in 43 areas and were flat in 32 areas.
Most notable price gains were recorded in centrally-located districts near to city center, with smaller rises in emerging areas, the report said. But it added that prices of pre-owned homes in remote areas fell on average.
"Monthly transactions of existing homes have been staying above 10,000 units since March, probably an indication that the market has hit its bottom already," the office said. "We expect ... transactions shall remain weak as there are no signs tightening policies will be eased."