Mar. 2, 2010 - New home sales in Shanghai plunged more than 50% last month, a record low in the previous five years, due to a wait-and see attitude among potential buyers, sources reported.

In February, Shanghai sold 320,000 square meters of residential houses, down 54% from January, or 23.4% from a year earlier. The average transaction price of the city's residential houses was RMB 19,700 per sq m last month, 1.29% less than in January.

Between Feb. 15 and Feb. 21, new home sales in Shanghai dived 82% partly due to the week-long Spring Festival holiday. Sales of new homes, excluding those meant for relocated residents under urban redevelopment plans, plunged from the previous week to 13,000 sq m in the city. Average prices dropped 4% from the previous week to RMB 19,079 per sq m. No supply of new homes was registered during the period.

From Feb.13 to Feb.19, only 21 units of new homes were sold, the lowest level since 2006. Most home purchasers expect a decline in home prices over the coming months since the government has carried out measures to curb speculation and cool the overheated market in the country.