Shanghai's second-hand housing index rose in September for the 18th consecutive month as the scant supply of new residences continued to push up sales prices for the city's used apartments.

The monthly index, released yesterday by www.ehomeday.com, a major housing Website, jumped to 2,009 in September, an increase of 4.09 percent, a bit slower than the 6.03-percent rise in August. The index tracks prices for used apartments across the city.

"The imbalance between supply and demand hasn't been resolved, and the local market remains a strong sellers' market," said Huang Weiwei, an ehomeday analyst.

The local supply of new residential properties dropped to below six million square meters on October 9, the lowest since the second half of 2005, according to the official Shanghai Real Estate Trading Center Website. An acceptable supply for the city would be around 10 million square meters, industry sources said.

Across Shanghai, price increases above three percent were recorded in about one-fifth of the areas monitored, the Website said.

Used apartments in Huangpu District took the lead with a growth rate of 6.52 percent, followed by Minhang and Zhabei districts, which recorded increases of 6.45 percent and 5.65 percent.

The local rental index, which is also compiled by the Website, advanced 2.2 percent to 1,079 last month, with mixed performances across apartment categories.

Average rents for high-end apartments - two-bedroom units going for more than 6,000 yuan (US$800) a month - dipped 0.9 percent. Three bedroom apartments fell the most in this category.

Mid-range properties - two-bedroom units priced between 2,000 yuan and 6,000 yuan a month - rose 1.4 percent from a month earlier, with those in Putuo, Changning and Pudong districts increasing the most.

Average rents for the city's privatized public apartments jumped 3.3 percent last month, with noticeable increases found in Minhang, Putuo and Yangpu districts.

(Shanghai Daily October 16, 2007)