Muted mood still clouds Shanghai home sector

The sales volume of new houses in Shanghai last week stayed under the 150,000 square-meter level because of continued sluggish sentiment, latest market data showed.

The purchases of new homes, excluding government-funded affordable housing, rose 9.4 percent week on week to 131,000 square meters, Shanghai Deovolente Realty Co said in a report released yesterday.

"None of the residential projects across the city managed to register sales of more than 40 units last week, an indication of really subdued momentum among homebuyers," said Lu Qilin, a Deovolente researcher.

"The comparatively favorable weather condition this summer didn't help drive potential buyers to enter the market."

The average cost of new homes fell 5.2 percent week on week to 26,267 yuan (US$4,274) per square meter as medium to low-end developments dominated the city's top sellers, according to Deovolente data.