Caution dampens Shanghai pre-owned home index

2014-09-05 08:56 Shanghai Daily Web Editor: Qin Dexing

Shanghai's pre-owned housing index fell again in August because buyers and sellers were generally cautious.

The index, which monitors month-over-month price changes, shed 0.71 percent, or 21 points, from July to 2,919, the third consecutive decline since June, the Shanghai Existing House Index Office said in a report released yesterday.

"It was the second straight month for the index to register a faster pace of decrease, evidence that the market has been undergoing a deeper correction with larger price cuts being offered in more areas around the city," said Chen Zhen from the index office. "About 80 percent of homeowners who sold their houses agreed to provide discounts as large as 10 percent."

The weak sentiment continued to cloud Shanghai's pre-owned home market in August, with more owners not selling their properties and prospective buyers again opting to sit on the sideline.

At the end of August, the stock of previously owned homes stood at 102,888 units, down 16 percent from the start of this year, according to the office.