Rocketing house prices in Shanghai have made finding their dream house into a nightmare for many working-class people. But people selling pre-owned or 'second-hand' houses are offering lower prices and more convenient transport. Let's follow CRI's Shanghai correspondent Wang Jing to have a look at Shanghai's second-hand houses.

"We are dealing with low priced second-hand houses, on average, three to five apartments sell every month, they sell much better than new houses."

Zhou Yadong works in a small housing agency in downtown Shanghai. His company is huddled among a row of housing agencies on the street, whose major profits come from renting and selling pre-owned houses.

At the end of last year, for the first time ever, the number of pre-owned houses sold in Shanghai outstripped that of new ones.

Despite the warnings by a rising number of economists who claim the housing sector in Shanghai is overheating, the house prices in the past year experienced another stunning increase. At the end 2004, the average house price was 10,000 Yuan or about 1,200 US dollars per square meter, which is about five times the monthly income of an average worker.

Meanwhile, the city's fast developing economy is creating a huge need for housing. Many of the city's new immigrants are forced to turn their eyes to cheaper second houses. But these so-called cheap houses are actually not at all cheap as they are supposed to be. This is Zhou Yadong.

"The average price of an old house is over 10,000 Yuan per square meter in this downtown area, it's not that cheap compared with the new houses, the only difference is the old houses are smaller, which is why the prices are a little lower."

While new immigrants are setting their sights on the pre-owned houses, investments from businessmen are also pouring in, giving an added boost to the already overheated market. On par with the soaring price of new houses, pre-owned houses have also experienced price hikes for three consecutive years. And the increase rate is also on the rise.

The prosperous second-hand housing market has given rise to new trading methods. Online trading in second-hand houses will start this year, allowing people register their property, sign contracts, and even conduct the final cash transfer from comfort of their computers.

Far from being discouraged by the new competitors, at the start of this year Zhou Yadong's company has set up a number of new outlets to expand their businesses in the city center and even further afield.

Wang Jing, CRI news, Shanghai.

(Photo source: baidu.com)

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