Shanghai existing home index posts losses, again

Shanghai's existing housing index posted losses for the 12th consecutive month despite a mild recovery in sentiment among buyers.

The index, which monitors month-over-month price changes in 130 areas across the city, fell 0.17 percent, or 5 points, to 3,898 in November, the Shanghai Existing Housing Index Office said in a report released on Monday.

Citywide, some 13,390 pre-occupied homes changed hands last month, up 11.1 percent from October and 18.3 percent from the same period a year ago, the office's data showed.

Pre-used homes costing less than 3 million yuan (US$435,894) accounted for 67.1 percent of the total, and those worth 5 million yuan or more made up about 11 percent.

"The low market momentum will probably linger through the end of this year with rather insignificant ups or downs in both prices and transaction volume," the office said.

Prices of pre-occupied homes climbed in 59 areas, fell in 55 and were flat in 16.

Pujiang in Minhang District, Nanqiao New City in Fengxian District and Sijing in Songjiang District remained the three most sought-after areas last month, with sales of 414, 311 and 290 homes.

On the inventory side, the city had 71,467 pre-occupied homes available for sale as of the end of November, a month-on-month decrease of 5.3 percent and a year-on-year drop of 46.1 percent.

Between January and November, some 147,800 pre-occupied homes were sold around the city, outnumbering 2017's total of 146,600 units, a separate report released earlier by Shanghai Homelink Real Estate Agency Co showed.

"Despite the moderate increase in sales from last year, the overall sluggish sentiment in 2018 wouldn't change with weakness continuing to extend probably through to year's end," said Zhao Baogen, a researcher at Shanghai Homelink.