(Yicai) Dec. 3 -- Sales of second-hand homes in the three major cities of China's Yangtze River Delta region -- Shanghai, Hangzhou, and Suzhou -- set new highs for the year last month on the back of looser housing market policies. Further records are unlikely this month, according to analysts.

Preowned home sales surpassed 10,000 in November in each of the three cities, the biggest in the Yangtze River Delta region by economic output, per data from real estate platforms. Shanghai had more than 27,000 sales, the most in 44 months, according to realtor Anjuke.

In the 10 districts of Hangzhou, the capital of Zhejiang province, almost 10,430 were sold online, the highest since March last year, according to the local branch of Beike Research Institute. Prices steadied, with the average per square meter rising 3 percent from October to CNY30,296 (USD4,160).

In Suzhou, sales jumped 28 percent to nearly 10,280. Online contract signings also rose 16 percent to nearly 10,100, a record for the year.

China’s housing market is showing signs of a recovery following a prolonged slump, with pronounced upticks in new and pre-owned apartment sales. The upturn has come since September when the authorities took steps such as easing mortgage rates, lowering down payment requirements, relaxing purchase restrictions, and reducing deed taxes.

The market will maintain a certain level of activity, with December's transaction volume likely to remain stable, though the possibility of new records being set for the year is slim, noted Lu Wenxi, an analyst at Centaline Property in Shanghai.

As the effects of looser market policies wane, fewer buyers will be willing to pay high prices for second-hand homes this month, said Shangguan Jian, head of the local branch of Beike Research Institute. He expects a slight decline in sales this month compared with November.

Banks in Hangzhou and other major Chinese cities are raising mortgage rates in response to a rebound in their local housing markets, Yicai reported yesterday, with more expected to do the same.

Lenders in Hangzhou have hiked rates on first homes twice in the past two months to 3.1 percent from 2.9 percent, according to real estate agents. Similar increases were also made by banks in cities such as Nanjing, capital of Jiangsu province, and Wuhan, capital of Hebei province.

Editors: Shi Yi, Emmi Laine