The supply of existing homes is pretty tight, and home prices are starting to creepup after stabilizingor even dropping.
Sales of existing homes in Shanghai last month tumbled 15.5 percent to 17,800 units, the first drop in four months, Century 21 China Real Estate said in a report last week. The homes were sold at an averageprice of 17,000 yuan per square meter, up 3.4 percent from July.
Recovering home-buying sentimentsince May, both in existing and new home markets, has boostedthe confidence of individualsellers, who have been reducing discountsor even raising their prices. Six of nine areas in the city, including Tonghe in Baoshan District, Lianyang in the Pudong New Area and Xinzhuang in Minhang District, saw average prices rise by between 5 and 10 percent in August from a month earlier, Century 21 research showed.
A separatereport by Shanghai Centaline Property Consultants Ltd showed that the values of existing homes for sale in August gained 1.4 percent from July to 17,470 yuan per square meter, amid a double-digitdrop in volume.
Compared with outlyingdistricts, downtownareas registered particularlysluggishmomentumin August, with notabledeclines in both the number of home-viewing trips as well as inquiries from potentialbuyers, said Song Huiyong, research director at Shanghai Centaline.Shanghai s existing housing index, which tracks price variationsof previously occupied homes in the city, rose 0.8 percent in August from July, after fractional gains in July and June.The city s existing home market will likely remain stagnant for another few months, with flat volumes and firm prices, industry analysts predicted.