(Yicai) March 11 -- Shanghai’s second-hand housing market is showing strong signs of recovery, with record daily transactions, particularly in the small-unit segment favored by first-time buyers.

After daily unit sales topped 1,000 for the first time this year on March 1, the figure climbed to 1,432 on March 8, according to figures released by local trading services platform Online Real Estate. Daily sales averaged 947 in the first eight days of this month, nearly matching last December's peak of 958.

Some 66.3 percent of second-hand homes sold in Shanghai last month had an area of less than 90 square meters, up from 62.6 percent the month before, indicating the appearance of more first-time buyers in the market, according to data from real estate brokerage Lianjia.

After falling from high levels at the end of last year, the city’s secondary housing market has begun to stabilize and halt its decline, Chen Xiaotian, chairman of Yihan Business Consulting, told Yicai.

Realtors have also seen a jump in pre-owned home transactions, with one in Shanghai's Putuo district completing five on March 9 alone, an agent said to Yicai.

With the number of viewings on the increase, bargaining room has narrowed significantly, said a staffer at a major real estate agency in Shanghai. "The willingness of owners to lower prices has diminished due to the growing number of buyers, but they now find it easier to reach an agreement,” the person said.

The rebound in second-hand home sales is the most direct sign that the market is moving toward recovery, noted Zhang Bo, director of think tank 58 Anjuke Institute. Overall sales have surged since the start of this month, further reinforcing the signs of a pickup, Zhang added.

"The Shanghai pre-owned housing market has become active this month, driven by demand release and market expectations," Zhang said. "This is expected to inject more vitality into the real estate market this year."

Editors: Tang Shihua, Martin Kadiev