THE supply of existing homes jumped about 10 percent in Shanghai over the past 10 days as more home owners decided to take profit amid market uncertainties.

At 6pm yesterday, the local stock of existing houses available for sale stood at 125,507 units, according to the city's official housing Website, www.fangdi.com. That compared to 119,630 units registered on June 4 and 114,495 units on May 28.

"Tightening policies launched by the central government since mid April to curb speculation in the country's overheated housing market are taking effect," said Song Huiyong, a research director with Shanghai Centaline Property Consultants Ltd. "More home owners, mainly investors and speculators, are more likely to take their profit as it remains unclear what would happen next because local guidelines are yet to be announced."

China announced a series of stern measures to cool the country's red-hot housing market more than one month ago, which mainly included increased down-payment and mortgage interest. In the latest move, China's housing and lending regulators as well as the central bank said over the weekend that banks should consider both the mortgage and home purchase records of people applying for second home loans, the first time China has included home ownership records in determining second home mortgages.

"A higher inventory will usually put downward pressure on home prices and a notable group of end users might enter the market this month if home owners agree to offer further discounts," Song added.

Across the city, Baoshan and Putuo districts saw the largest stock rise of 23 percent in the period. They were followed by Jiading, Zhabei and Hongkou districts, which rose between 15 percent and 20 percent. Chongming and Jinshan posted drops in existing home supply.

"Discounts of between 5 and 10 percent are prevalent in the city's existing home market while some home owners will cut further if they hurry to secure deals," said Huang Hetao, a research manager with Century 21 China Real Estate.