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New home sales fall on supply shortage

0 CommentsPrint E-mail Shanghai Daily, January 26, 2010
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New home sales fell for the fifth week in Shanghai amid a slack buying momentum and a supply shortage.

The sales of new homes, excluding those designated for relocated residents under urban redevelopment plans, fell to 141,600 square meters between January 18 and Sunday, a weekly drop of 15 percent, Shanghai Uwin Real Estate Information Services Co said yesterday.

The supply of new homes, meanwhile, dived nearly 50 percent to 88,000 square meters, and average sales price rose 2 percent to 21,647 yuan (US$3,169) per square meter, according to Uwin statistics.

"The recent policies to curb speculation and cool the overheated market are taking effect, as buyers chose to wait while real estate developers slow their product launches," said Lu Qilin, a researcher of Uwin.

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