Shanghai pre-owned home index rise eases

Shanghai's pre-owned housing index rose at a slower pace in April amid a significant drop in transactions.

The index, which tracks price variations of pre-owned homes, gained 40 points, or 1.5 percent, from March to 2,701, extending a rally for the 11th consecutive month, the Shanghai Existing House Index Office said yesterday.

In March, the index climbed 1.72 percent.

"Following an extremely robust sentiment in March, which was triggered by tightening measures announced earlier by the central government to rein in speculation, buying sentiment fell naturally as demand started to ease," said Chen Zhen, an analyst at the office. "A significant drop in inventory also hampered sales."

Prices rose in 120 of the 130 areas covered in the city by an average of 1.71 percent in April from March. They fell in the remaining 10 areas by an average of 0.94 percent, the office said.