Shanghai existing home market continues downward trajectory

Shanghai's existing housing index extended its downward trajectory last month despite continuously improving momentum among buyers.

Shanghai's existing housing index extended its downward trajectory last month despite continuously improving momentum among buyers.

The index, which tracks month-over-month price changes in 130 areas across the city, fell 0.28 percent, or 9 points, to 3,885 in January, posting losses for the 14th straight month, the Shanghai Existing Housing Index Office said in its latest report.

Around the city, about 16,480 pre-occupied homes changed hands, an increase of 7.4 percent from December and 41.5 percent from the same period a year ago, the office's data showed.

Pre-used homes costing less than 3 million yuan (US$442,843) accounted for 65 percent of the total, and those worth 5 million yuan or more made up 11.9 percent.

Prices of pre-occupied homes climbed in 21 areas, fell in 83 and were flat in 26.

"Increasing transaction during a traditional low season indicated that the market has somewhat stabilized," the office said. "The rebound in transaction was mainly boosted by continuous price cuts by individual home owners as well as the fact that some buyers and sellers preferred to secure their deals before the Spring Festival holiday."

Citywide, Pujiang in Minhang District, Sanlin in the Pudong New Area and Nanqiao New City in Fengxian District were the three most sought-after areas in January, with sales of 425, 417 and 384 pre-used homes.

On the inventory side, the city had 67,965 pre-occupied homes available for sale as of the end of January, a month-on-month decrease of 1.9 percent and a year-on-year drop of 43.8 percent.

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