Shanghai's second-hand housing market is likely to continue to stumble after declining in August and September as potential buyers are still cautious about uncertainties in the real estate market while sellers are unwilling to lower their second-hand property prices.

The second-hand housing price index in Shanghai, compiled by www.ehomeday.com, dropped to 2,360 points in September ? usually seen as the golden month for real estate transactions.

The gauge declined to 2,385 points in August.

The index tracks the average transaction price in 11 districts in Shanghai and serves as an indication of the trend for residential properties.

The trend in October is likely to track downward as potential customers are pessimistic following tight credit policies and the transaction volume this month probably will also decline further, said a research report by Centaline Property Agency Ltd.

The "golden season" for the real estate sector in September and October is not likely this year, according to the report.

Indices for seven districts around the city fell an average of 0.56 percent. The index for Minhang District dropped 1.91 percent, the most among all the districts.

Minhang saw more new apartments on the market than any other district last month, which partly led to a price fall in second-hand homes.

Only four districts, including Jing'an and Xuhui in the downtown, saw a slight rise in the index.

Discounts by real estate developers also lured customers who were previously keen on second-hand apartments. They have launched promotions to stimulate sales in a sluggish market.

(Shanghai Daily October 14, 2008)