Weakness extends over Shanghai's existing home market

Weakness extended in the city's existing housing market for the 11th straight month with no sign of major recovery any time soon.

The Shanghai Existing House Index Office, which tracks month-on-month price changes in 130 areas around the city, noted a fall of 0.26 percent, or nine points, from September to 3,903 last month.

In terms of transactions, some 11,980 pre-occupied homes changed hands in October, a month-on-month drop of 14 percent, or a year-over-year gain of 14.4 percent.

Those costing less than 3 million yuan (US$431,685) accounted for 67.3 percent of the total. Homes worth five million yuan or more made up about 11.5 percent, according to the office.

"Prices of pre-used houses continued to shed amid generally sluggish sentiment among potential buyers, who have now got an edge in negotiations with sellers," the office said. "For the last two months of 2018, we will probably see further declines in sales as well as price."

Prices of pre-occupied homes climbed in 48 areas, fell in 65 and were flat in 17, the office's data showed.

Pujiang in Minhang District, Sijing in Songjiang District and Nanqiao New City in Fengxian District were the three most sought-after areas last month, with sales of 322, 284 and 269 homes.

On the inventory side, the city had 75,438 pre-occupied homes available for sale as of the end of October, a month-on-month decrease of 2 percent and a year-on-year drop of 49.5 percent, according to data compiled by the office.

"Wait-and-see sentiment among home seekers will continue to linger for a while, at least through the end of this year," Zhao Baogen, a researcher at Shanghai Homelink Real Estate Agency Co, echoed. "The pressure on the existing housing market will only turn greater as more developers start to offer price cuts to replenish their capital."