Home prices continue falling

The index for existing housing in Shanghai extended its downward path last month despite a sustained upward trend in volume.

The index, which tracks month-on-month price changes in 130 areas across the city, fell 0.28 percent, or nine points, to 3,885 in January — its 14th straight monthly fall — 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 up 41.5 percent from the same period a year ago.

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 transactions during the traditional low season indicated that the market has somewhat stabilized,” the office said. “The rebound in transactions 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.”

(Cao Qian)