Transaction volume of second-hand homes rose last month in Shanghai though average prices continued to decline, according to statistics from industry research companies and real estate agencies.

"Citywide transaction volume rose from October though the final monthly figure won't come out until next week," Chi Shengyu, an analyst with the local second-hand housing index compiler's office, told Shanghai Daily yesterday. "As for prices, nearly 80 percent of areas monitored by our research center declined, with an average fall of 1.22 percent."

Last month, enquiries for used homes jumped about 30 percent from a month earlier, of which middle and low-class houses accounted for the majority, according to the compiler's office.

A clear downward trend for transaction prices began roughly from the second half in the city while the volume of transactions dropped even earlier.

Last month's pickup in transaction volume was partly helped by recently introduced positive measures by the government, industry people said.

For instance, the deed tax, levied on home transactions, has been cut to 1 percent for first time ordinary home buyers and the stamp duty has also been temporarily scrapped. In addition, the minimum down payment for ordinary homes has been reduced to 20 percent from 30 percent and first time ordinary home buyers are now able to enjoy a 30-percent discount on the central bank's benchmark rates for their mortgage rates, compared to the previous 15 percent discount. Individuals may also be exempted from a 5.55-percent business tax if they sell their homes two years after purchase, down from the previous requirement of five years.

Statistics released by Shanghai Centaline Property Consultants Ltd, one of the city's largest real estate brokerages, showed transaction volume of second-hand homes climbed 5 percent last month though average prices dipped compared to a month earlier.

A growing number of deals occurred in the city's northern area during the period, accounting for more than 40 percent of the total. Benefiting from a rapid development of commercial facilities and an extension of Metro lines, Baoshan, Putuo and Zhabei districts each took 20 percent, 13.5 percent and 10 percent of all deals, Centaline officials said.

(Shanghai Daily December 3, 2008)