(Yicai) March 25 -- Shanghai's pre-owned home market is recovering, with related transactions expected to exceed 30,000 units for the first time in five years this month.

21,443 second-hand houses were sold in Shanghai this month as of March 22, equal to a daily average of 975 units, according to official figures from the local government. Transactions are forecast to surpass 30,000 units if the momentum continues, given the further easing of real estate policies and the peak season.

The last time Shanghai's pre-owned home sales exceeded 30,000 was in early 2021, towards the end of the last upward cycle. 20,000 monthly transactions are widely seen as the boom-bust line for the city's second-hand housing sector, while 30,000 typically signals an overheated market.

"There is a good chance that Shanghai's pre-owned home transactions will break the 30,000-unit mark this month," Lu Wenxi, chief analyst at Shanghai Centaline Property, told Yicai. "If achieved, it would signal a clear reversal in market sentiment and the rebuilding of confidence in the housing market, which is highly significant."

As market expectations improve, some netizens have complained on social media about sellers retracting offers and putting back their properties on the market at higher prices.

"I listed my apartment for sale at the end of last year, pricing it at a relatively high price compared with similar ones in the same community," a seller told Yicai. "But after reviewing the market recently, I found that my price is now almost the lowest in the neighborhood."

"A recent surge in both viewings and transactions has encouraged many sidelined buyers to make purchases," a real estate agent in Pudong New Area told Yicai. "However, housing prices have not changed much from last month, and we have not seen sellers raising prices at the last minute."

Another real estate agent in Baoshan district said that prices have not moved much, but bargaining has become much tougher. "The perception that prices are rising largely stems from the fact that most lower-priced listings have been sold already, leaving mostly pricier units on the market."

Shanghai's second-hand home transactions will likely remain active in April, Lu predicted. Yet whether the market heat can persist through May and June after the traditional peak season, and whether prices can stay stable, will become major focal points going forward, he pointed out.

Editors: Tang Shihua, Futura Costaglione