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Shanghai second-hand housing trading declines

(chinadaily.com.cn)
Updated: 2009-09-07 11:41

The total trading volume of second-hand housing in Shanghai continued to decline in August, after dropping steadily during July, the Oriental Morning Post reported Monday.

Related readings:  Beijing housing trading volume decreased by 45% in Aug  Shanghai housing prices hit new high in Aug  More new houses to curb rising Shanghai housing prices  Middle class feels locked out of housing market  Low-income group's housing a problem

The average price of a second-hand house decreased slightly in August, ending a price rally over the past 10 months.

This marks the first time this year that both trading volume and prices slid, the newspaper said. The drops indicate that Shanghai's second-hand housing market has entered a period of adjustment, and that a trend of steadily increasing housing prices might drop, the newspaper said.

According to statistics released by Century 21 China Real Estate, one of the largest real estate franchises in the country, 23,700 units of second-hand housing were bought or sold in August, down 18 percent from July. That is a much sharper drop than last month, which saw a decrease of six percent from June to July. Average housing prices fell one percentage point to 12,700 yuan ($1,859.31) per sq m.