NEW home sales in Shanghai rose 22 percent to 1.12 million square meters in June, exceeding the 1 million mark for the third time this year, according to latest market data.

The average cost of new homes, excluding government-funded affordable housing, rose 3.2 percent from May to 23,966 yuan (US$3,878) per square meter, Shanghai Deovolente Realty Co said yesterday.

"Despite a decrease in supply, June still saw the second-highest monthly volume in the first half," said Lu Qilin, a Deovolente researcher. "Noticeably, more customers bought homes for upgrading purposes this month."

In the first six months, 6.05 million square meters of new houses were sold, up 57.2 percent annually.