SLUGGISH sentiment continued in Shanghai's new housing market for the second straight week with decreases in both sales and supply.
The purchases of new residential properties, excluding government-subsidized affordable housing, fell 5 percent week-on-week to 153,200 square meters during the seven-day period ended Sunday, Shanghai Deovolente Realty Co said today in its research.
"The scorching summer heat has been damping momentum among home-seekers over the past two weeks as the housing market has entered its traditional slack season," said Lu Qilin, a Deovolente researcher. "Real estate developers, satisfied with the strong sales registered in the first half, also felt less of an incentive to release products, giving rise to a drop in supply."
Last week, about 104,500 square meters of new residential properties were released to the local market, a week-on-week drop of 12.4 percent, Deovolente data showed.
The average price of new homes, however, still managed to head north despite lackluster momentum mainly due to comparatively better performance in the mid- to high-end segment.
New homes sold last week averaged 25,066 yuan (US$4,056) per square meter, up 1 percent from the previous week.
Across the city, an apartment project in western Qingpu District was the most popular among buyers after it sold 107 units at an average price of less than 20,000 yuan per square meter, according to Deovolente.

SLUGGISH sentiment continued in Shanghai's new housing market for the second straight week with decreases in both sales and supply.
The purchases of new residential properties, excluding government-subsidized affordable housing, fell 5 percent week-on-week to 153,200 square meters during the seven-day period ended Sunday, Shanghai Deovolente Realty Co said today in its research.
"The scorching summer heat has been damping momentum among home-seekers over the past two weeks as the housing market has entered its traditional slack season," said Lu Qilin, a Deovolente researcher. "Real estate developers, satisfied with the strong sales registered in the first half, also felt less of an incentive to release products, giving rise to a drop in supply."
Last week, about 104,500 square meters of new residential properties were released to the local market, a week-on-week drop of 12.4 percent, Deovolente data showed.
The average price of new homes, however, still managed to head north despite lackluster momentum mainly due to comparatively better performance in the mid- to high-end segment.
New homes sold last week averaged 25,066 yuan (US$4,056) per square meter, up 1 percent from the previous week.
Across the city, an apartment project in western Qingpu District was the most popular among buyers after it sold 107 units at an average price of less than 20,000 yuan per square meter, according to Deovolente.