Shanghai's existing housing index edged up 0.2 percent in November from October to extend its gains for the third straight month.

The index, which monitors price fluctuations of existing houses, added 5 points to 2,558 in November, according to a latest report released by Shanghai Existing House Index Office, which tracks 70 major residential areas across the city.

After three consecutive months of weakness, the index started to rebound slightly from September amid a recovering demand from buyers.

"Generally speaking, housing prices, both in prime and outlying areas, remained rather firm over the past month as both sellers and buyers felt reluctant to yield," said Tao Ting, an analyst with the index office. "Most of the buyers are expecting major price cuts at the end of the year or early next year while sellers are unwilling to offer discounts due to a number of factors, including fears of higher inflation."

Across the city, the prices of existing homes in five downtown districts edged up 0.26 percent last month, versus a rise of 0.27 percent in October. The office also found that 54 of the 70 areas tracked saw a monthly rise in price. Fourteen areas were unchanged from a month earlier while two areas declined.

By area, prices of existing homes in Zhujing in Jinshan District rose 0.63 percent, the biggest rise in November, followed by the 0.62 percent gain in South Zhongshan Road in Luwan District and Penglai in Huangpu District which added 0.61 percent. North Sichuan Road in Hongkou District saw the largest drop of 0.64 percent among areas that fell, the office said.

"Under pressure of a yuan appreciation and inflation capital continued to flow into the market, notably the high-end sector, while demand from end-users helped the mid- to low-end markets," said Ma Ji, research manager at Shanghai Centaline Property Consultants Ltd.

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