Rental of high-end residences dropped by 0.9 percent last month from a month earlier in Shanghai, despite of the rebounding leasing market.

The housing rental index reached 999 points last month, two points up from a month earlier. The index, based on 1,000 points, reflects the leasing condition in the city, an index above 1,000 points is considered a "positive zone."

But high-end residence rentals still declined as more owners began renting their residences instead of selling, including in Xintiandi and Gubei areas, after the government's effort to curb speculation by overseas investors to avoid inflation in the nation's property market. Rental of two-bedroom homes grew by 0.2 percent in the period after dropping for months.

Housing rentals in Minhang district began rising because residential conditions and nearby traffic facilities began maturing. Particularly in Longbai area, many foreigners rented apartments and raised the average monthly lease price to 1,600 yuan (US$204) from the former 1,000 yuan.