The transaction volume of existing homes in Shanghai is expected to jump 75 percent to 23.16 million square meters this year and more than half of the apartments cost not more than 800,000 yuan (US$117,130), according to the latest research by the city's largest real estate chain.

Sales of used homes would likely total 282,436 units, or 290.8 billion yuan by value, by the end of this year, Shanghai Centaline Property Consultants Ltd said yesterday.

"This year's property boom has been mainly fueled by robust demand from end-users as mid to low-class homes - those that measure not more than 90 square meters and cost not more than 800,000 yuan - remained the most sought after properties in 2009," said Ma Ji, a senior manager with Centaline's research department.

According to the company, about 56 percent of used homes sold this year in the city cost not more than 800,000 yuan, and those that are priced between 800,000 yuan and 2 million yuan took a 35-percent market share.

In terms of area, about 66 percent of existing homes sold this year were not bigger than 90 square meters.

Most home deals during the 12-month period were transacted in Minhang and Baoshan districts and Pudong New Area. The three areas transacted 19 percent, 15 percent and 8 percent of the city's total respectively, Centaline research has found.

For 2010, analysts said prices of existing homes would likely remain high or rise further if no curbs are introduced by the government because an imbalance in supply and demand as well as anticipation of higher inflation would continue to boost the housing market.

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