SHANGHAI'S second-hand housing index, one of the important barometers reflecting local home-buying demand, rose 1.96 percent last month on a significant rebound in transactions though an increase in prices was mild.

The March index, which mainly tracks prices of used apartments across the city and released by www.ehomeday.com, gained 44 points to 2,315 last month. The monthly index rose 1.3 percent in January and 1.1 percent in February.

"The market witnessed a seasonal rebound in March after the traditional slack January and February," said Chi Shengyu, an ehomeday analyst. "We have noticed that overall transaction volume increased by some 50 percent from a month earlier, which indicated buying sentiment has recovered, while home prices rose by two to four percent in some monitored areas."

Citywide, second-hand home prices in downtown Huangpu District led the gainers with a month-on-month increase of 3.38 percent. In particular, used apartments in Nanjing Road E. area jumped 4.06 percent while those around the City God Temple rose 3.32 percent.

Other areas where prices rose steadily included Caoyang and Wuning areas in Putuo District which climbed 2.86 percent and 3.54 percent, and Pengpu and Daning areas in Zhabei District which rose 2.96 and 3.25 percent respectively, according to the index compiler.

The local rental index, released by the Website, rose 2.7 percent, or 31 points, to 1,186 last month.

The average monthly rent for high-end apartments, usually more than 6,000 yuan (US$857) for a two-bedroom unit, gained 2.5 percent, with Xintiandi and Nanjing Road W. topping gainers.

Mid-class properties of 2,000 yuan to 6,000 yuan per month for a two-bedroom unit added 0.6 percent from a month earlier.