New | Recovery in China's home market still weak

Prices of existing homes inched up in Beijing and Shanghai last month, but falling sales indicated recovery in China's housing market remains fragile, according to the latest readings of the SCMP-Century 21 index.

The key will be to look at the performance next month when the market gets away from the distortion created by the Lunar New Year, which falls in mid-February this year, compared with late January last year.

Average home prices in Beijing's secondary market climbed 0.1 per cent from December to 41,586 yuan per square metre. It was the capital's fifth consecutive monthly rise.

Prices in Shanghai edged up to 34,278 yuan per square metre from 34,269 yuan. This was the financial hub's fourth consecutive monthly gain.

"From the price perspective, the upward market sentiment is sustained," said property consultancy Century 21 China Real Estate, the partner of the South China Morning Post for the monthly index.

The SCMP-Century 21 secondary home price index rose to 159 last month from December's 158 in Beijing. In Shanghai, it remained unchanged at 142.