Secondary market dips in Beijing, edges up in Shanghai

PUBLISHED : Tuesday, 13 May, 2014, 2:45pm
UPDATED : Wednesday, 14 May, 2014, 3:30am

The secondary markets for homes in Beijing and Shanghai diverged for the fourth month in a row last month, the SCMP-CTC index shows. Prices for used homes in Beijing fell for a fifth consecutive month, by 0.32 per cent from March, to 42,257 yuan per square metre on average.

But average prices rose in Shanghai for the fourth consecutive month, by 0.4 per cent to 34,532 yuan per sq metre.

The index is the product of a collaboration between the South China Morning Post and Century 21 China Real Estate (CTC), a mainland property consultancy.

"The room for price negotiation will continue to widen in Beijing [in the following months], but some sellers will turn to the rental market at a certain point," CTC said. "The wait-and-see sentiment is deepening in Shanghai, and many home seekers could not seal their deals quickly."

The SCMP-CTC secondary home price index dipped a touch to 161 in Beijing last month and notched up to 143 in Shanghai.

This is the second instalment of the SCMP-CTC index, which will appear in the middle of each month in Property Post.

In year-on-year terms, secondary home prices gained 14.1 per cent in Beijing and 19.7 per cent in Shanghai last month.

Beijing had a 7 per cent fall from March in secondary home transactions, to 9,494 units, and volume slumped 20 per cent in Shanghai, to 17,192 units.