Pre-owned home sales fall again

Sales of pre-occupied homes fell for the second month in Shanghai with prices remaining quite stable, according to the latest data.

Citywide, around 23,000 units of existing homes changed hands last month, a decrease of 8 percent from April, Shanghai Homelink Real Estate Agency Co said in a regular report. On a year-over-year basis, the figure rose 45 percent.

These pre-used homes were sold for an average 38,701 yuan (US$5,587) per square meter, or 3.06 million yuan per unit, both down 1 percent from a month earlier.

"Shanghai's existing housing market continued to lose its momentum in May, showing similar weakness plaguing the new home market during the same period," said Yang Yulei, a senior analyst at Shanghai Homelink. "However, it remains unclear whether it heralds a downward trend or just an insignificant retreat before the market picks up its strength again."

By area, Pujiang in Minhang District, Sanlin in Pudong New Area and Nanqiao New City in Fengxian District were the three most sought-after communities in May, selling 617, 567 and 499 homes at an average cost of 29,227 yuan per square meter, 42,653 yuan per square meter and 20,555 yuan per square meter, respectively.

Between January and May, a total of 101,000 units of existing homes were sold around the city, an increase of 53 percent from same period a year ago. Average cost of these homes stood at 38,341 yuan per square meter, or 3 million yuan per unit, a year-over-year decrease of 5 percent and 6 percent, respectively, Homelink data showed.