Pre-occupied home sales drop, but recovery expected soon
Sales of pre-occupied homes fell moderately in Shanghai in January, hovering around 11,000 units for the eighth consecutive month.
Some 11,800 pre-owned homes changed hands last month, a decrease of 2.6 percent from December, Shanghai Existing House Index Office said in their latest report. That, however, represented a rise of 36 percent year on year.
"Taking into account the fact that January is the traditional low season for property sales, it was not a bad performance," the office said. "It could be an indication that the market was starting to gather some momentum for a future breakthrough."
Meanwhile, the city's existing housing index, which tracks month-over-month price changes in 130 areas citywide, lost 0.32 percent from December, to 3,981 in January.
Prices of pre-owned homes rose in 23 areas, fell in 86 areas, and were flat in 21 areas.
Around the city, Pujiang in Minhang District, Sanlin in Pudong New Area and Zhaoxiang in Qingpu District were the three most sought-after areas where 290, 278 and 268 pre-used homes were sold last month, respectively.
By price, the most notable decreases were recorded in remote areas, while their centrally-located counterparts suffered less of a retreat, the office said.
On the inventory side, some 120,885 pre-occupied homes were available for sale around the city as of the end of January, a month-over-month drop of 2.9 percent, and a year-over-year decline of 28.5 percent, according to data compiled by the office.
"The local market remains generally stable at the moment, before a highly anticipated recovery in March," said Lu Wenxi, senior manager of research at Shanghai Centaline Property Consultants Co, one of the city's major realty chains. "Most individual owners are willing to offer a price discount of around 5 percent but a further cut seems quite difficult."