Home sales fell in Shanghai last month, according to the latest market research.
Sales of new homes, excluding government-funded affordable housing, dropped 23.5 percent from March to 610,900 square meters in April, ending a two-month rally since February, according to a Shanghai Deovolente Realty Co report.
New homes were selling at an average of 22,566 yuan (US$3,600) per square meter, an increase of 2.3 percent from March.
"Purchases of new homes costing less than 20,000 yuan per square meter fell nearly 30 percent from March while those with a price tag of between 20,000 yuan and 50,000 yuan a square meter only climbed about 10 percent, giving rise to a quite notable decrease in volume," said Lu Qilin, a researcher at Deovolente. "As property curbs remain in place, developers, particularly of mid to low-end projects, have no option but to offer rather significant discounts if they hope to boost sales."
Jiading, Baoshan and Songjiang districts and the Pudong New Area took nearly two thirds of the city's total new home sales in April, according to Century 21 China Real Estate, evidence that mid to low-end developments in outlying areas remain the most sought after types of property currently.
A residential project in Jiading became the best seller last month with 307 apartments selling for an average 9,209 yuan per square meter.
Sentiment among real estate developers, meanwhile, continued to gain in April, climbing for the third straight month. About 880,900 square meters of new residential properties were released, an increase of 31.3 percent from March, Deovolente data showed.