Shanghai’s new home sales fall to 25-week low

New home purchases fell to a 25-week low in Shanghai last week as a record heat wave, inadequate supply and continuously high prices jointly crimped buying sentiment.

The sales of new homes, excluding government-subsidized affordable housing, dropped 22 percent from the previous seven-day period to 149,100 square meters, the lowest weekly volume registered since mid February, Shanghai Deovolente Realty Co said in a report released yesterday.

The average price fell 4.3 percent week-on-week to 22,352 yuan (US$3,646) per square meter, the lowest in 11 weeks, Deovolente data showed.

.The momentum among buyers plunged to the lowest in nearly six months as the mercury soared to a historical record, making last week the hottest week this summer,. said Lu Qilin, a Deovolente researcher. .However, an insufficient supply, particularly of mid- to low-end houses, and high home prices were the main reasons behind the sluggish sales..

Only 137,800 square meters of new homes were released locally last week, flat from the previous week.

As of Sunday, 262,000 square meters of new homes were sold in Shanghai in August, up 12.8 percent from the same period a month ago, said Century 21 China Real Estate in a report.