Across the city of Shanghai, 24,669 new homes were sold in August, a 4.2 percent jump from July, the Oriental Morning Post reported today.
The sold homes cover 2.83 million square meters, up 2.9 percent from July, the report said.
The supply of new residences was only 6.27 million square meters during the month, while the supply of second-hand homes covered 7.11 million square meters.
"The transaction of second-hand homes has exceeded new residences in recent months -- the first time the supply of second-hand homes exceeds new residences" said Xue Jianxiong, a researcher of UWIN Real Estate Institute.
"In a mature market, second-hand homes should have a bigger market share than new residences," Xue said.
The city has begun a crackdown on illegal practices among developers.
Any developer found reserving apartments for speculation purposes will face the possibility of losing their license.
Developers that refuse to kick off sales of apartments once construction is finished without a sound reason will be considered speculators and will receive a bad mark on their credit records, the Shanghai Housing, Land and Resources Administrative Bureau said last month.