A reduction in sales of Shanghai's used apartments, coupled with price adjustment in a few prime residential areas, led Shanghai's second-hand housing index to advance at a weak pace for the sixth consecutive month, the local index compiler said on Monday.

The local second-hand housing index rose by 1.05 percent in June.

The monthly index, which tracks prices for used apartments across Shanghai and is released by www.ehomeday.com, gained 25 points to 2,387 last month.

Between January and May, it increased 1.3 percent, 1.1 percent, 1.96 percent, 1.03 percent and 0.98 percent.

"Citywide, transaction volume dropped by about 25 percent in June as compared to a month earlier while second-hand apartment prices declined by around 5 percent in about one fifth of the places monitored by our Website," Chi Shengyu, an analyst with the index compiler said Monday.

"We expect the slack momentum to remain in the second half of this year with further adjustment in both volumes and prices."

Across Shanghai, second-hand home prices gained 2.1 percent in Putuo District last month, leading all gainers, followed by the districts of Yangpu and Hongkou, which climbed 2.05 percent and 1.89 percent.

In particular, used apartments in Putuo's Shiquan/Yichuan and Taopu jumped 2.68 percent and 2.02 percent, whereas those in the Caoyang/Changfeng communities rose 1.93 percent.

Meanwhile, used-apartment prices in some prime locations began to falter in June, a normal correction after too rapid a growth previously, the compiler said.

For instance, second-hand home prices in Nanjing Road W. and Huaihai Road retreated 2.25 percent and 1.59 percent last month while those in Lujiazui and Xinhua Road yielded 2.73 percent and 0.53 percent.

Separately, the local rental index, also released by the Website, edged up 0.2 percent, or 2 points, to 1,217 last month.

The average monthly rent for high-end apartments, usually asking for more than 6,000 yuan (US$875) for a two-bedroom unit, increased 1.1 percent, with Xujiahui and Zhenning Road topping gainers.

Mid-class properties of 2,000 yuan to 6,000 yuan per month for a two-bedroom unit inched up by 0.3 percent from a month earlier with districts of Hongkou and Minhang recording notable gains. And the average rental for Shanghai's privatized public apartments edged up 0.6 percent last month, with Yangpu and Xuhui leading others.

(Shanghai Daily July 15, 2008)