Existing home price growth slows in June

Shanghai's existing housing index continued to rise at a slower pace in June amid weaker sentiment among home buyers.

The index, which monitors month-on-month price changes in 130 areas of the city, edged up 0.11 percent, or 5 points, to 3,931 points last month, the Shanghai Existing Housing Index Office said in its regular monthly report released on Thursday.

Citywide, about 21,740 pre-occupied homes changed hands, a decrease of 6.8 percent from May. On a year-on-year basis, the figure climbed 42.2 percent.

Pre-owned homes costing less than 3 million yuan (US$435,000) accounted for 63.1 percent of the total. Those worth 5 million yuan or more made up nearly 13 percent.

Prices of pre-occupied homes rose in 58 areas, fell in 37 and were flat in 35.

"While monthly transaction volume of pre-used homes fell for the third month, the 20,000-unit important barrier was still maintained as the retreat was still moderate," the office said. "Meanwhile on the price side, a continuously slower pace of growth also indicated stability of the market."

By area, Pujiang in Minhang District, Sanlin in Pudong New Area and Zhoukang in Pudong New Area were the three most sought-after communities in June, with sales of 558, 498 and 453 homes.

On the supply side, the local inventory of pre-occupied homes headed south again, dropping for two consecutive years. As of the end of June, the city had 65,558 pre-occupied homes available on the market, a month-on-month dip of 0.4 percent and a year-on-year drop of 22.7 percent, according to the office.

For the first half, a total of 122,200 units were sold around the city, an increase of 51 percent from same period a year ago, a separate report released earlier by Shanghai Homelink Real Estate Agency Co showed.

The average cost of a pre-occupied home fell 6 percent year on year to 3.02 million yuan, or down 5 percent to 38,480 yuan per square meter, Homelink data showed.