Average prices for commodity homes dropped to 9,767 yuan per square meter in the week from February 15 to 21, a drop of 34.89 percent from the previous week. This is the first time the average price has fallen below 10,000 per square meter in the city since last April, according to data published yesterday by Shanghai UWIN property research center.

Recent sluggish sales have dragged down housing prices in Shanghai, said Xue Jianxiong, director of the research center. But he predicted that during the middle term prices for new homes will stand at around 10,000 to 11,000 yuan per square meter and that average commodity home prices will soon rebound to above 10,000 yuan.

Figures from UWIN also showed that in the first 21 days of February, commodity homes sales in Shanghai reached 176,600 square meters, a mere 26 percent of last year's figure. Apart from sluggish sales, the discount sales offered by major property developer Vanke during the Lantern Festival were also affecting both the buyer and seller's housing market.

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(China.org.cn February 25, 2008)