PURCHASES of new housing units hit a three-and-a-half-month low in Shanghai during the first week of July as the market entered into its traditional sluggish season, according to latest market data.

The sales of new residential properties, excluding government-subsidized affordable housing, fell 45.5 percent from the previous seven-day period to 161,300 square meters last week, the lowest weekly volume registered since mid February, Shanghai Deovolente Realty Co said today in a report.

They cost an average 24,825 yuan (US$4,017) per square meter, a week-on-week increase of 5.1 percent.

On the supply side, meanwhile, some 119,300 square meters of new houses at three developments were released last week to the local market, a notable increase compared to 36,800 square meters introduced during the previous week, Deovolente data showed.

"Buying sentiment plunged notably last week as the hottest months of the year finally kicked off, which usually confine potential buyers at home," said Lu Qilin, a Deovolente researcher. "This slack momentum will probably extend through July and August while the low supply registered over the past few weeks may also affect sales."

Sales of new homes have outnumbered their supply for three consecutive weeks, Deovolente data showed.

Across the city, a residential project in Zhoukang, Nanhui area, was the most popular housing development after selling 4,339 square meters of new residential or 35 units, for an average price of 12,608 yuan per square meter, according to Deovolente data.