Beijing posts first rise in used home prices for 2014
Second-hand home values end losing streak in the capital while those in the financial hub fall for the third month but at a much slower pace
Prices of second-hand homes in the mainland's two most important cities headed in different directions last month, with Beijing posting the first monthly rise for the year and Shanghai recording its third consecutive decline.
Average secondary home prices in Beijing rose 0.3 per cent from August to 40,579 yuan (HK$51,380) per square metre, the SCMP-CTC index shows. In Shanghai, prices fell 0.1 per cent to 34,062 yuan per square metre, slowing from August's 1.6 per cent drop.
"Although Beijing and Shanghai have yet to scrap home-purchase restrictions, market expectations are clearly changing due to the relaxation of credit policies," said mainland consultancy Century 21 China Real Estate, which partnered the South China Morning Post on the index. "Both secondary housing markets showed signs of recovery."
In year-on-year terms, prices dropped 2 per cent in Beijing but were up 6.4 per cent in Shanghai.
Most of the more than 40 cities that have imposed home-purchase restrictions since 2010 have relaxed their controls in the past few months, as local governments try to stimulate demand.
The property market is crucial to the nation's economic growth. A cooling market since early this year has challenged the top leaders' efforts to keep growth at about 7.5 per cent for the year.