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Used home prices continue to rise

PRICES of used homes continued to climb in the city last month amid increasing demand from investors and people seeking home upgradings.

Shanghai's second-hand housing index rose 0.95 percent, or 22 points, to 2,370 points in May, extending gains for a third consecutive month.

The monthly index, which tracks prices of existing homes in 56 areas across the city, had suffered losses for seven straight months before it recovered in March.

"We've noticed a growing demand from people who prefer larger homes in prime locations as they want to further upgrade their living environment or make a future investment," said Chi Shengyu, an analyst at the index compiler's office. "That's somewhat different from what we saw in earlier months when the majority of buyers were young couples and relocated residents seeking affordable housing."

Second-hand homes in five downtown areas registered an average price increase of 1.39 percent last month, led by Huangpu, Jing'an and Luwan, which were up 1.73 percent, 1.63 percent and 1.4 percent, respectively.

Across the city, 52 out of the 56 monitored areas gained over the past month while three suffered setbacks and one remained unchanged.

In particular, second-hand homes in the City God Temple area of Huangpu recorded the biggest price increase of 2.8 percent, followed by those in Dapuqiao of Luwan and Caojiadu of Jing'an, which rose 2.53 percent and 2.34 percent respectively.

A total of 29,300 units of used homes, or 2.37 million square meters, were sold across the city in May, up 2.35 percent and down 0.6 percent, respectively, from April. Average prices, meanwhile, rose 1.4 percent month-on-month to 11,838 yuan (US$1,733) per square meter, Century 21 China Real Estate said earlier this week.

Mid to high-end homes in Lujiazui, Xujiahui and Gubei areas, in particular, became more popular with investors, Century 21 analysts said.

Separately, the local rental index, also released by the index compiler, dipped 5 points, or 0.4 percent, to 1,192 in April.

Rentals for high-end apartments, mid-class properties and low-end homes all fell.
Rents for high-end residences in Dapuqiao and Gubei lost the most, down 1.5 percent and 1 percent, respectively.


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